Homework Answers
| End of Year | Cash Flow | Present Value |
| 1 | 1500 | 1,442.31 |
| 2 | 1700 | 1,571.75 |
| 3 | 1900 | 1,689.09 |
| 4 | 2100 | 1,795.09 |
| 5 | 2300 | 1,890.43 |
| Sum of PV | 8,388.67 |
First calculate the Present Value of the cash-flows using the PV
function
Then, find out the annual payment with the PMT function
PMT(0.04,5,8388.67) = 1884.32
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