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A payment stream consists of a payment of $2800 today, a payment of $1100 in 6 months, and a payment of $1800 in 24 months.
A payment stream consists of a payment of $2800 today, a payment of $1100 in 6 months, and a payment of $1800 in 24 months. What is the fair market value of this payment stream 21 months from today? Assume a compound interest rate of 8% compounded quarterly. What is FV2, FV1, PV3 and the total fair value market? Use a time diagram to help.
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