What is the value today of a money machine that will pay $2,977.00 per year for 15.00 years? Assume the first payment is made 10.00 years from today and the interest rate is 13.00%.
What is the value today of a money machine that will pay $2,977.00 per year for 15.00 years? Assume the first payment is made 10.00 years from today and the interest rate is 13.00%.
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
Section: Chapter Questions
Problem 1PS
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To get the answer
Step 1 plug everything using n=30 and you will have 0 for fv. Solve for pv
Step 2 n= 2 and wte u got for pv in stdp 1 will go into fv. Pmt will be 0. Solve for pv

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What is the value today of a money machine that will
pay $2,977.00 per year for 15.00 years? Assume the
first payment is made 10.00 years from today and the
interest rate is 13.00%.
Submit
Answer format: Currency: Round to: 2 decimal places.
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