Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You recently learned that your late grandmother has left you an inheritance. Your inheritance will allow you to receive the amount of $ 1 9

You recently learned that your late grandmother has left you an inheritance. Your inheritance will allow you to receive the amount of $1900 at the end of each year for a total of 19 consecutive years. However, because of your young age, these amounts will not begin until the end of 4 years. If the interest rate is 6%, what is the equivalent present value of the inheritance?
$18868.30
$16792.72
$21200.42
$17800.28
$27153.95

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

Extreme Events In Finance A Handbook Of Extreme Value Theory And Its Applications

Authors: Francois Longin

1st Edition

1118650190, 978-1118650196

More Books

Students also viewed these Finance questions

Question

Define the goals of persuasive speaking

Answered: 1 week ago