In: Finance
What is the present value of the following annuity? 4083 every year at the end of the year for the next 7 years, discounted back tot he present at 17.61% per year, compounded annually?
Year | Cash Flow | PVF at 17.61% | Present Value |
1 | 4,083.00 | 0.8503 | 3,471.64 |
2 | 4,083.00 | 0.7230 | 2,951.83 |
3 | 4,083.00 | 0.6147 | 2,509.84 |
4 | 4,083.00 | 0.5227 | 2,134.04 |
5 | 4,083.00 | 0.4444 | 1,814.50 |
6 | 4,083.00 | 0.3779 | 1,542.82 |
7 | 4,083.00 | 0.3213 | 1,311.81 |
Present Value | 15,736.48 |