How much would you have to invest today to receive $5000 each year, at the beginning...

How much would you have to invest today to receive $5000 each year, at the beginning for 10 years at 8 percent?

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Expert Solution

Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate

=1.08*5000*[1-(1.08)^-10]/0.08

=5000*7.24688791

=$36234.44(Approx)

jeff jeffy answered 1 year ago

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