contestada


i need to know amount needed now to invest to receive annuity of 15000

amount of annuity expected %15000

payment quarterly

4 years

8 %

Present value needed now to receive annuity

Respuesta :

Answer:

P = $203,666

Step-by-step explanation:

given,

rate = 8 %   for quarterly  rate = 8/4 = 2 %

time = 4 years = 4 × 4 = 16 quarters                            

annuity needed after 4 years =  $ 15000                            

Present value (P)= [tex]A [\dfrac{1-(1+r)^{-n}}{r}][/tex]                

                        P = [tex]15000 [\dfrac{1-(1+0.02)^{-16}}{0.02}][/tex]        

                        P = $203,665.63                            

hence, the present value require to get Annuity of 15000 P = $203,666

Otras preguntas