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Can you explain what I did wrong-got 0 of 10 points on attached problems 1. Find the PV of a stream of payments lasting 6
Can you explain what I did wrong-got 0 of 10 points on attached problems
1. Find the PV of a stream of payments lasting 6 years. Each payment is for $450, and the discount rate is 3.5%. The payments are all received at the end of the year, starting with the first payment, received exactly one year from the present. Show your work. Your Answer: PV = Yearly Revenue $450 i=3.5% N=6 years PV = $366.15 Given a $450 payment at a discount rate of 3.5% for 6 years, the present value of the stream of payments is $366.15. 2. Find the PV of the following perpetuity: Yearly payment = $125 (received at the end of each year) Discount rate = 6.25% Show your work. Your Answer: Yearly Payment = $125 i = 6.25% $1923.08 Given a yearly payment of $125 in a perpetuity at a discount rate of 6.25%, the Present Value of the payment would be $1923.08. Should be exactly $2000Step by Step Solution
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