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In: Economics

What is the present value of annual $7,399 payments over the upcoming 5 years ,on an...

What is the present value of annual $7,399 payments over the upcoming 5 years ,on an interest rate of 10%?

Solutions

Expert Solution

Annual Payments = $7,399

Time period = 5 years

Interest Rate = 10%

Calculate Present Value

PV = A (P/A, 10%, 5)

PV = $7,399 (P/A, 10%, 5)

PV = $7,399 (3.790786769)

PV = $28,048

The present value is $28,048

Rahul Sunny answered 2 years ago
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