What is the value of the investment today?                                                                 PV?
N= 15
I/Y= 11
PMT= 9500
FV= 0 

To determine the present value (PV) of the investment, we can use the formula for the present value of an annuity, since regular payments (PMT) are involved:

\[
PV = PMT \times \left(\frac{1 - (1 + \frac{I/Y}{100})^{-N}}{\frac{I/Y}{100}}\right)
\]

Given values:
- $ N = 15 $ (number of periods)
- $ I/Y = 11\% $ (interest rate per period)
- $ PMT = 9500 $ (payment amount per period)
- $ FV = 0 $ (future value)

Let's plug in these values and calculate:

\[
PV = 9500 \times \left(\frac{1 - (1 + \frac{11}{100})^{-15}}{\frac{11}{100}}\right)
\]

I'll calculate this now.The present value (PV) of the investment is approximately **\$68,313.26**.

Would you like more details or have any questions?

Here are some related questions that might interest you:
1. How does changing the interest rate affect the present value of an investment?
2. What happens to the present value if the number of periods is increased?
3. Can you explain the difference between present value and future value in investments?
4. How would the calculation change if the future value (FV) were not zero?
5. What is the impact of increasing the payment amount (PMT) on the present value?

**Tip:** The present value of an annuity decreases as the interest rate increases, since future payments are discounted more heavily.

What is the value of the investment today? PV? N= 15, I/Y= 11, PMT= 9500, FV= 0

Learn how to calculate the present value (PV) of an investment with a payment of $9500 per period, an interest rate of 11%, and 15 periods. This detailed step-by-step guide covers key financial concepts like the present value of an annuity and time value of money. Suitable for high school seniors and college students.

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