In: Finance
What is the value today of a money machine that will pay $1,618.00 every six months for 17.00 years? Assume the first payment is made 4.00 years from today and the interest rate is 7.00%.
Answer format: Currency: Round to: 2 decimal places.
unsure if I'm doing the process right. thanks
The first payment is being made in 4 years and further every payment is being made every 6 month, so next payment would be made ta 4 and half year, 4.5 years,
we have to calculate the present value of each cash flow and add it to get the present value today