Question
James leases a ski chalet to his best friend, Janet. The lease term is five years with $30,000 annual payments due at the beginning of
James leases a ski chalet to his best friend, Janet. The lease term is five years with $30,000 annual payments due at the beginning of each year. What is the present value of the payments discounted at 8% per annum?
I know that the solution is $30,000 x 4.31213 = $129,364 Where did the 4.31212 come from?
Why can't I do $30,000 x 3.993? (the Present Value ordinary annuity)
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Water Audits And Loss Control Programs
Authors: American Water Works Association
4th Edition
1625761007, 978-1625761002
