You expect to receive $800 at the end of each of the next twenty years.What is the present value of the stream of payments if the interest rate is 12%?
A) $5,975.55
B) $5,892.62
C) $6,049.60
D) $6,054.63
E) $5,619.80

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1b_b12a_a768_e3c5370c405d_TB2902_11 PV = 800 × 11ea7fdb_fc1b_d83b_a768_15a2d147f035_TB2902_11 = $5.975.55
Using a financial calculator:
N = 20, I/Y = 12, PMT = -800, FV = 0, cpt PV = $5,975.55

You Expect to Receive $800 at the End of Each