What is the present value of $6,000 paid at the end of each of the next 65 years if the interest rate is 7% per year? ... The present value is $ (Round to the nearest cent.)

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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What is the present value of $6,000 paid at the end of each of the next 65 years if the interest rate is 7% per year?
The present value is $
(Round to the nearest cent.)
Transcribed Image Text:What is the present value of $6,000 paid at the end of each of the next 65 years if the interest rate is 7% per year? The present value is $ (Round to the nearest cent.)
Expert Solution
Step 1

Annual payment (P) = $6000

Interest rate (r) = 7%

Number of annual payments (n) = 65

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