Question

CSePub Home Book Store Instructors Independent Authors About Aed, ant has pronned you $2.000 00, one year bom today Inadthon each year tr hat she has pimedaprymntenbeamtery ofte utrymert) hils400% lag" t an te lat payment 9e wscohue tostow his generosity tr 25 years, ging a ㅃ of 25 paymertite nerest rate s 900% whiiter prrise woh tty? Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here Submit Arswer

Answer 1

	CACLULATION OF THE PRESENT VALUE OF FUTURE CASH FLOW
	Years	Payment (A)	PVF of $ 1 @ 9 % (B)	Present Value (A XB)
	1	$           2,00,000	0.9174	$     1,83,486.24
	2	$           2,08,000	0.8417	$     1,75,069.44
	3	$           2,16,320	0.7722	$     1,67,038.73
	4	$           2,24,973	0.7084	$     1,59,376.40
	5	$           2,33,972	0.6499	$     1,52,065.56
	6	$           2,43,331	0.5963	$     1,45,090.07
	7	$           2,53,064	0.5470	$     1,38,434.57
	8	$           2,63,186	0.5019	$     1,32,084.36
	9	$           2,73,714	0.4604	$     1,26,025.44
	10	$           2,84,662	0.4224	$     1,20,244.46
	11	$           2,96,049	0.3875	$     1,14,728.66
	12	$           3,07,891	0.3555	$     1,09,465.87
	13	$           3,20,206	0.3262	$     1,04,444.50
	14	$           3,33,015	0.2992	$         99,653.47
	15	$           3,46,335	0.2745	$         95,082.21
	16	$           3,60,189	0.2519	$         90,720.64
	17	$           3,74,596	0.2311	$         86,559.15
	18	$           3,89,580	0.2120	$         82,588.54
	19	$           4,05,163	0.1945	$         78,800.08
	20	$           4,21,370	0.1784	$         75,185.39
	21	$           4,38,225	0.1637	$         71,736.52
	22	$           4,55,754	0.1502	$         68,445.86
	23	$           4,73,984	0.1378	$         65,306.14
	24	$           4,92,943	0.1264	$         62,310.44
	25	$           5,12,661	0.1160	$         59,452.17
		Total		$   27,63,394.92
		Answer = $ 2,763,394.92