Determine the present value of the following series of payments: • $ 4,000 at the end...

Determine the present value of the following series of payments:

• $ 4,000 at the end of each month for 8 years at 9% compounded monthly.

Step # 1: Graph the situation

Step # 2: Equation with Factor nomenclature.

Step # 3: Replacement of factors and mathematical solution of the problem.

Solutions

Expert Solution

2: Equation with factor nomenclature =

here,

pmt = Periodic Payment

r = rate of interest

n = number of periods

= $273,033.75

*Here payment period = 12*8 = 96

ekkarill92 answered 2 years ago

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