Question

What is the present value of $2,100 a year at a discount rate of 8 percent if the first payment is received 7 years from now and you receive a total of 23 annual payments?

Answer 1

As per below table present value of 2100$ every for 23 years starting from 7th year will be 13724.61$-

Year	Annual Payment	PV Factor @8%	Present Value
1	0	0.926	-
2	0	0.857	-
3	0	0.794	-
4	0	0.735	-
5	0	0.681	-
6	0	0.630	-
7	2100	0.583	1,225.33
8	2100	0.540	1,134.56
9	2100	0.500	1,050.52
10	2100	0.463	972.71
11	2100	0.429	900.65
12	2100	0.397	833.94
13	2100	0.368	772.17
14	2100	0.340	714.97
15	2100	0.315	662.01
16	2100	0.292	612.97
17	2100	0.270	567.56
18	2100	0.250	525.52
19	2100	0.232	486.60
20	2100	0.215	450.55
21	2100	0.199	417.18
22	2100	0.184	386.28
23	2100	0.170	357.66
24	2100	0.158	331.17
25	2100	0.146	306.64
26	2100	0.135	283.92
27	2100	0.125	262.89
28	2100	0.116	243.42
29	2100	0.107	225.39
		Total	13,724.61