f the current rate of interest is 8% APR, then the present value of an investment that pays $250 per quarter and lasts 20 years is closest to:
a.$18,519
b.$48,443
c.$9936
d.$20,000
PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)] |
C = Cash flow per period |
i = interest rate |
n = number of payments |
PV= 250*((1-(1+ 8/400)^(-20*4))/(8/400)) |
PV = 9936.13 |
f the current rate of interest is 8% APR, then the present value of an investment...
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