you plan to invest $10,000 on the last day of every year for the next five...

you plan to invest $10,000 on the last day of every year for the next five years, if the interest rate on the investment is 6 percent, the present value of your investment is...

Expert Solution

Future Value of an Ordinary Annuity

= C*[(1+i)^n-1]/i

Where,

C= Cash Flow per period

i = interest rate per period

n=number of period

= $10000[ (1+0.06)^5 -1] /0.06

= $10000[ (1.06)^5 -1] /0.06

= $10000[ (1.3382 -1] /0.06]

= $56,370.93

jeff jeffy answered 3 years ago

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