Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Present value of annuities You got into a car accident and settled out of court for equal payments of $ 2 , 5 0 0

Present value of annuities
You got into a car accident and settled out of court for equal payments of $2,500 at the end of each year for the next seven years. If the annual interest rate stays constant at 7%, what is the value of these payments in today's dollars? Round your answer to the nearest whole dollar.
$11,452
$14,416
$16,841
$13,473
You found out that now you are going to receive payments of $9,000 for the next 16 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 14%. What is the present value of these payments? Round your answer to the nearest whole dollar.
$51,424
E
m
x
2
(18)
2
P
W
0
(Q)
citv
zoom
770
i=
=1
MacBook Air
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Personal Finance

Authors: E. Thomas Garman, Raymond Forgue

8th Edition

0618471421, 9780618471423

More Books

Students also viewed these Finance questions

Question

How does your language affect the way you think?

Answered: 1 week ago