What is the present value of $3,525 per year, at a discount rate of 10 percent, if the first payment is received 7 years from now and the last payment is received 25 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value=Cash flows*Present value of discounting factor(rate%,time period)
=3525/1.1^7+3525/1.1^8+..........+3525/1.1^25
=3525[1/1.1^7+1/1.1^8+..............+1/1.1^25]
=(3525*4.721779319)
=$16644.27(Approx).
What is the present value of $3,525 per year, at a discount rate of 10 percent,...
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