What is the value today of $3,600 received at the end of each year for seven years if the first payment is paid at the end of year 3 and the discount rate is 10 percent?
Present Value = Amount * Present Value of Discounting Factr ( rate , Time)
= $ 3,600 * 1/ (1.10) ^ 3 +$ 3,600 * 1/ (1.10) ^ 4 +$ 3,600 * 1/ (1.10) ^ 5+$ 3,600 * 1/ (1.10) ^ 6+ $ 3,600 * 1/ (1.10) ^7+$ 3,600 * 1/ (1.10) ^ 8 +$ 3,600 * 1/ (1.10) ^ 9
= $ 14,484.55
Hence, the correct answer is $ 14,484.55
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