What is the present value of the declining uniform gradient series that has end of first-year...

What is the present value of the declining uniform gradient series that has end of first-year payment of $9,000 declining by 10% per year to year 10 with an interest rate of 10% compounded annually? Note: 10% is based on the end of the first-year payment.

Solutions

Expert Solution

Solution :-

Therefore Present value of the declining uniform gradient series that has end of first-year payment of $9,000 declining by 10% per year to year 10 with an interest rate of 10% compounded annually = $38,950.62

If there is any doubt please ask in comments

Thank you please rate

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

What is the present worth of a geometrically increasing series with a first year payment of...

What is the present worth of a geometrically increasing series with a first year payment of $11,000 increasing at 6% per year for 25 years if the interest rate is 6% compounded annually?

Determine the present value of the following series of payments: • $ 4,000 at the end...

Determine the present value of the following series of payments: • $ 4,000 at the end of each month for 8 years at 9% compounded monthly. Step # 1: Graph the situation Step # 2: Equation with Factor nomenclature. Step # 3: Replacement of factors and mathematical solution of the problem.

In an arithmetic gradient series cash flow shown below, determine the present worth in year 0...

In an arithmetic gradient series cash flow shown below, determine the present worth in year 0 for i =8% per year, A1=50 , and A2=170. Year 0 1 2 3 4 5 6 7 8 Cash Flow, $ - A1 50 70 90 A2 130 150 170

a. What is the present value of end-of-year cash flows of $7,000 per year, with the...

a. What is the present value of end-of-year cash flows of $7,000 per year, with the first cash flow received five years from today and the last one 40 years from today? Assume interest rate of 10%. $41,271.67 $44,496.49 $45,733.15 $46,264.30 $50,218.30 b. What is the value of a 30-year annuity that pays $1250 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 6 percent for years 1 through...

What is the present value of the following annuity? 4083 every year at the end of...

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?

What is the present value of the following annuity? $759 every year at the end of...

What is the present value of the following annuity? $759 every year at the end of the year for the next 6 years, discounted back to the present at 17.51 percent per year, compounded annually?

the present value of an annuity for 2 years, with the first payment at the end...

the present value of an annuity for 2 years, with the first payment at the end of 10 years is 40,239 pesos. If money is worth 4.94%, what is the value of an annuity for 5 years?

Q) Determine the present worth of a geometric gradient series with a cash flow of $38,537...

Q) Determine the present worth of a geometric gradient series with a cash flow of $38,537 in year 1 and increases of 11% each year begining of year 4 through year 11. The interest rate is 16% per year. Q) The capital cost (CC), now, when a family want to have $6,004, per year, starting in year 26 and continuing forever, is close to. Assume rate of return13% Q) Alternative X has a first cost of $20000, an operating cost of...

1. Find the present value of a series of quarterly payments of P950 each, the first...

1. Find the present value of a series of quarterly payments of P950 each, the first payment is due at the end of 2 years and 3 months and the last at the end of 5 years and 6 months. If the money is worth 15% compounded quarterly. 2. Find the monthly payment for 36 periods to discharge an obligation of P88000 if the money is worth 12%, m=12 and the first payment is due at the end of 1...

What is the present value of the following annuity? $704 every quarter year at the end...

What is the present value of the following annuity? $704 every quarter year at the end of the quarter for the next 5 years, discounted back to the present at 16.09 percent per year, compounded quarterly?

Subjects