The annually compounded discount rate is 5.5%. You are asked to calculate the present value of a
Question:
The annually compounded discount rate is 5.5%. You are asked to calculate the present value of a 12-year annuity with payments of $50,000 per year. Calculate PV for each of the following cases.
a. The annuity payments arrive at one-year intervals. The first payment arrives one year from now.
b. The first payment arrives in six months. Following payments arrive at one-year intervals
(i.e., at 18 months, 30 months, etc.).
AppendixLO1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: