You are offered a court settlement in the following terms: you will receive 4 equal payments of $7,958 each every year, with the first payment being made 3 years from now. The current annual interest rate is 4%. Assume yearly compounding. What is this settlement worth in present value terms? Enter your answer in the form of dollars, rounded to the nearest cent, and without the dollar sign ('$').

You are offered a court settlement in the following terms: you will receive 4 equal payments of $7,958 each every year, with the first payment being made 3 years from now. The current annual interest rate is 4%. Assume yearly compounding. What is this settlement worth in present value terms? Enter your answer in the form of dollars, rounded to the nearest cent, and without the dollar sign ('$').

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

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