Question
In: Finance
The beneficiary of a life insurance policy will receive payments of $722 per month for 18...
The beneficiary of a life insurance policy will receive payments of $722 per month for 18 years. At an annual interest rate of 5%, what is the value of the monthly payment stream in today’s dollars?
Solutions
Expert Solution
Monthly Payment = $722
Time Period = 18 years
Interest Rate = 5%
Calculating Present Value,
Using TVM Calculation,
PV = [FV = 0, T = 216, I = 0.05/12, PMT = 722]
PV = $102,697.76
jeff jeffy answered 2 years agoRelated Solutions
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