In: Finance
What is the present day value of twenty annual periodic payments of $30,000 paid at the end of each year at a discount rate of 2.7%?
Present value of periodic payments=
(30,000 for the end of 20 years @ 2.7%)
= (30,000*15.928)
= $ 458,959.43
Hence the present value will be $ 4,58,959.43