Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Find the present value of 10 annual payments of $ 1,000 per annum where the first payment is made 17 years from now. So there

Find the present value of 10 annual payments of $1,000 per annum where the first payment is made 17 years from now. So there are 10 annual payments from t=17 to t=26 inclusive. The discount rate is 21% pa. The present value of these payments is:

a.

$158.69

b.

$192.01

c.

$3,905.43

d.

$4,054.08

e.

$4,761.9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Shariah Governance Of Islamic Banks

Authors: Karim Ginena, Azhar Hamid

1st Edition

1118460774,1118460804

More Books

Students also viewed these Finance questions