Ask Question
BusinessBusiness
17 August, 06:27

What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from today and the last payment is received 20 years from today

+3
Answers (1)
  1. 17 August, 10:26
    0
    Present Value = $290.20

    Explanation:

    The present value of a future payment can be calculated with the following formula:

    PV = FV / (1 + i) N

    Where i is the annual interest rate or discount rate, and t is the number of years until the payment will be received.

    PV = Present Value = ?

    FV = Payment = $4,400

    i = 8.3% = 0.083

    N = 20 - 6 = 14

    PV = $4400 / (1 + 0.083) (20 - 6)

    PV = $4400 / (1.083 * 14)

    PV = $4400 / 15.162

    PV = $290.1992

    Present Value = $290.20 (Approximated)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from today and the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Kim's Bridal Shoppe has 10,700 shares of common stock outstanding at a price of $41 per share. It also has 240 shares of preferred stock outstanding at a price of $92 per share.
Answers (1)
Which one of the following schools would appear first in an alphabetical indexing system? A. Central High School, St. Louis, MO B. Central High School, Canton, OH C. Central High School, Scranton, PA D. Central High School, Dearborn, MI
Answers (1)
What does the last paragraph in a cover letter deal with? The closing paragraph of a cover letter is where you can mention your blank information and request for an interview
Answers (1)
Pulse Mobiles Inc. is a cell phone manufacturing company. Its latest range of smartphones are visually similar to the Y-series range of smartphones from Talkie Gen Inc., in terms of its shape and look-and-feel.
Answers (1)
Stan and Heidi are married and both have careers in business. If one of the two were todie, there would be a sudden drop in income. To provide protection from this risk the couple should purchase: A. disability insurance. B. life insurance. C.
Answers (1)
New Questions in Business
You purchased 600 shares of SLG, Inc. stock at a price of $41.20 a share. You then purchased put options on your shares with a strike price of $45.00 and an option premium of $1.10. At expiration, the stock was selling for $48.30 a share.
Answers (1)
Which of the following statement is true? a. The demand for puma shoes is more elastic than the demand for shoes b. The demand for Cheerios is less elastic than the demand for cereal c. Products with many complements have a more elastic demand d.
Answers (1)
What is the par value for an ingredient?
Answers (1)
What is the second rule of risk management
Answers (2)
A typical high-income household in 1980 earned $125,556. a similar household in 2009 earned $180,001. what was the relative increase in income for these households from 1980 to 2009? round to the nearest one percent. incorrect%
Answers (1)
Home » Business » What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from today and the last payment is received 20 years from today
Sign Up Forgot Password?