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Sagot :
Answer:
the present value is $325,249.13
Explanation:
The computation of the offer price today is given below:
It means we have to measure the present value
Given that
RATE is 14%
NPER is 50
PMT is $40,000
FV is $0
The formula is given below:
=-PV(RATE,NPER,PMT,FV,PV,TYPE)
After applying the above formula, the present value is $325,249.13
The offer price today of the pension fund will be $325,249.13.
Given information
RATE is 14%
NPER is 50
PMT is $40,000
FV is $0
Present value = -PV(RATE,NPER,PMT,FV,PV,TYPE)
Present value = -PV(14%, 50. 40000, 0)
Present value = -$325,249.13
In conclusion, the offer price today of the pension fund will be $325,249.13.
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