Question
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
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.
This is my answer:
PV = $434.78 + $420.08 + 405.87 + 392.15 + 378.89 + 366.08
PV = $2,397.85
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
