Your crazy uncle left you a trust that will pay you $38,000 per year for the next 28 years with the first payment received one year from today. If the appropriate interest rate is 7.1 percent, what is the value of the payments today?
Interest rate = 7.1%
Annual Payment = $38,000
Period = 28 years
Value of the payment's today = Annual Payment * PVAF (7.1% , 28 years)
= $38,000 * 12.020855
= $45,679.49
Value of the payment's today = $45,679.49
Your crazy uncle left you a trust that will pay you $38,000 per year for the...
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