Your crazy uncle left you a trust that will pay you $27,000 per year for the...

Your crazy uncle left you a trust that will pay you $27,000 per year for the next 20 years with the first payment received one year from today. If the appropriate interest rate is 4.7 percent, what is the value of the payments today?

Expert Solution

Solution :

At an appropriate interest rate of 4.7 percent, the value of the payments today is = $ 345,205.98

=$ 345,206 ( when rounded off to the nearest dollar )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 1 year ago

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