Rusty Steele will receive the following payments at the end of the next three ye
ID: 2704122 • Letter: R
Question
Rusty Steele will receive the following payments at the end of the next three years: $12,000, $15,000, and $17,000. Then from the end of the fourth year through the end of the tenth year, he will receive an annuity of $18,000.
At a discount rate of 10 percent, what is the present value of all future benefits? Use Appendix B andAppendix D. (Round "PV Factor" to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Rusty Steele will receive the following payments at the end of the next three years: $12,000, $15,000, and $17,000. Then from the end of the fourth year through the end of the tenth year, he will receive an annuity of $18,000.
Rusty Steele will receive the following payments at the end of the next three years: $12,000, $15,000, and $17,000. Then from the end of the fourth year through the end of the tenth year, he will receive an annuity of $18,000. At a discount rate of 10 percent, what is the present value of all future benefits? Use Appendix B andAppendix D. (Round "PV Factor" to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Explanation / Answer
Hi,
Please find the answer as follows:
Present Value = 12000/(1+.10)^1 + 15000/(1+.10)^2 + 17000/(1+.10)^3 + 18000/(1+.10)^4 + 18000/(1+.10)^5 + 18000/(1+.10)^6 + 18000/(1+.10)^7 + 18000/(1+.10)^8 + 18000/(1+.10)^9 + 18000/(1+.10)^10 = 101917
Answer is 101917
Thanks.
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