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20 October, 18:41

What is the present value of a stream of payments of $200 per year for 5 years with the first payment being received exactly 10 years from now if the interest rate is 10 %?

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  1. 20 October, 19:11
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    PW = 200 * (((1.1) ^5 - 1) : (.1 (1.1) ^5)) * (1.1) ^-9 = $321.5
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