What is the present value of ​$1,000 paid at the end of each of the next 100 years if the interest rate is 7% per​ year?
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Part 1
The present value is ​$enter your response here.  ​(Round to the nearest​ cent.)

To calculate the present value (PV) of $1,000 paid at the end of each of the next 100 years with a 7% annual interest rate, we use the formula for the present value of an annuity:

\[
PV = P \times \left( 1 - \frac{1}{(1 + r)^n} \right) \div r
\]

Where:
- $ P = 1000 $ (the annual payment),
- $ r = 0.07 $ (the annual interest rate),
- $ n = 100 $ (the number of years).

Let me calculate this for you.The present value of $1,000 paid at the end of each of the next 100 years, with a 7% interest rate, is approximately **$14,269.25**.

Do you want further details or have any questions? 

Here are 5 related questions:
1. How would the present value change if the interest rate were 5% instead of 7%?
2. What is the future value of the same annuity at the end of 100 years?
3. How does the length of the payment period affect the present value of an annuity?
4. What is the present value if the payments were made monthly instead of annually?
5. How would inflation impact the real value of these $1,000 payments over time?

**Tip:** When calculating present value, the higher the interest rate, the lower the present value becomes, as future payments are discounted more.

What is the present value of ​$1,000 paid at the end of each of the next 100 years if the interest rate is 7% per​ year?

Learn how to calculate the present value of a $1,000 annuity paid annually over 100 years with a 7% interest rate. This problem covers key financial concepts such as the time value of money, discounting, and the present value of an annuity formula. Suitable for advanced high school or college-level students.

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