The amount is computed as shown below:
= Amount of payment each year / discount rate
= $ 5,000 / 10%
= $ 50,000
The amount is computed as shown below:
= 1 / (1 + discount rate )9 x ( $ 5000 / 10%)
= 1 / 1.109 x $ 50,000
= $ 21,204.88 Approximately
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