$7,763     You found out that now you are going to receive payments of $7,000 for the next 14 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 14%. What is the present value of these payments? (Note: Round your answer to the nearest whole dollar.) $64,661

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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6. Present value of annuities

Your uncle has said that if you agree to finish college he will give you equal payments of $1,000 at the end of each year for the next eight years.
If the annual interest rate stays constant at 6%, what is the value of these payments in today’s dollars? (Note: Round your answer to the nearest whole dollar.)
$6,583
 
$5,279
 
$6,210
 
$7,763
 
 
You found out that now you are going to receive payments of $7,000 for the next 14 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 14%.
What is the present value of these payments? (Note: Round your answer to the nearest whole dollar.)
$64,661
 
$42,015
 
$38,318
 
$47,897
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