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

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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