PV of payments in 44 years

PV of payments today

CHO4_SM_5e_Stur C KutoSave Formulas Data Review View Page Layout Tell me Draw Insert ame == 29 Wrap Text Times New Roman 14 ' ' OA == = = Merge & Center aste BIU xfx D E G B A Problem 4-23 Assume that Social Security promises you $40,000 per year starting when you retire 45 years from today (the first $40,000 will be paid 45 years from now). If your discount rate is 7%, compounded annually, and you plan to live for 15 years after retiring (so that you will receive a total of 16 payments including the first one), what is the value today of Social Security's promise? $40,000.00 16 Payment Number of Payments Number of Years Until First Payment Rate 45 7.00% PV of Payments in 44 Years PV of Payments Today Contents 4-23 4-24 4-25 4-37 4-39 4-42