Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

(f) Find the present value of an investment that will pay $3,000 at the end of Years 10, 11, and 12. Use a discount rate of 8%.

Sagot :

facundobuzzetti

Answer:

PV= $3,867.67

Explanation:

Giving the following information:

Find the present value of an investment that will pay $3,000 at the end of Years 10, 11, and 12. Use a discount rate of 8%.

First, we will determine the future value of the payments:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {3,000*[(1.08^3) - 1]} / 0.08

FV= $9,732.2

Now, the present value:

PV= FV / (1 + i)^n

PV= 9,732.2 / (1.08^12)

PV= $3,867.67

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.