Petty Marine Co. has a long term plan to expand to a secound location thats actually near some water, so they want to start a monthly annuity to save 100,000 in capital over 9 years. The best rate they can find is 4.5% Find the montly payment. Round to the nearest cent

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.