Homework Answers
N = 50* 2=100
Rate = 9.8% /2 = 4.9%
Present value of the payments : R * [ (1+i) n - 1) / i (1+i) n ]
= 500,000 * [ (1+4.9%) 100 - 1) / 4.9%(1+4.9%) 100
= 10,118,727
Option , $10,118,727
Alternatively in excel:
| NPER | 100.00 | |
| FV | 0 | |
| PMT | 500000.0 | |
| Rate | 4.90% | |
| PV | $10,118,727.39 | [-pv(rate,nper,pmt,fv,1) |
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