What is the value today of receiving $2,472.00 per year forever? Assume the first payment is made 8.00 years from today and the discount rate is 9.00%.
Value as on year 8=Annual payments/discount rate
=(2472/0.09)
=$27,466.67(Approx)
Hence Current value=Value as on year 8*Present value of discounting factor(rate%,time period)
=$27,466.67/1.09^7
=$15025.21(Approx).
What is the value today of receiving $2,472.00 per year forever? Assume the first payment is...
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