What is the present value of $800 payments received at the beginning of each year for the next 7 years? Assume an interest rate of 10% APR.
Present value of annuity=(1+interest rate)*Annuity[1-(1+interest rate)^-time period]/rate
=1.1*$800[1-(1.1)^-7]/0.1
=$800*5.3552607
which is equal to
=$4284.21(Approx).
What is the present value of $800 payments received at the beginning of each year for...
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