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Today, you begin to receive payments of equal amounts at the beginning of each year for...

Today, you begin to receive payments of equal amounts at the beginning of each year for 10 years (including the payment you receive today). Assume the appropriate discount rate is 3%. If the present value of this series of payments is $40,000, what must be the amount of each payment?

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Expert Solution

rate positively ..

we have to use financial calculator to solve this
put in calculator, set the calculator at BEGIN mode
FV 0
PV -40000
I 3%
N 10
Compute PMT $4,552.64
ans = $4,552.64

jeff jeffy answered 2 years ago
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