Suppose we make yearly payments at end of each year, for the next 20 years. We...
Suppose we make yearly payments at end of each year, for the next 20 years. We pay $100 after one year, then for each subsequent year we increase the payment by $10, the interest rate is 10%. What is present value?
Homework Answers
Present worth of payments = 100 * (P/A, 10%,20) + 10 * (P//G, 10%,20)
= 100 * 8.513564 + 10 * 55.406912
= 1405.42
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