Math Problem Statement
$2 comma 0002,000 a year for 88 years discounted back to the present at 1010 percent. b. $7070 a year for 55 years discounted back to the present at 77 percent. c. $290290 a year for 1212 years discounted back to the present at 1212 percent. d. $530530 a year for 66 years discounted back to the present at 44 percent.
Solution
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Present Value
Discounting Cash Flows
Annuities
Formulas
Present Value of Annuity: PV = C * (1 - (1 + r)^(-n)) / r
Theorems
Time Value of Money
Suitable Grade Level
Grades 10-12, College-level Finance
Related Recommendation
Present Value of an Ordinary Annuity: $2,000 Per Year for 10 Years at 10% Discount Rate
Calculate Present Value of Annuity with Future Payments
Present Value of Annuity: $50,000 per Year for 25 Years at 4% Interest
Present Value Calculations: $8,600 in 12 Years at 8%, $20,700 in 7 Years at 10%, and $28,400 in 18 Years at 6%
Calculate Future Value of Annuity with Compound Interest | $10,000 Annually for 10 Years