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 6%?
A) $9,175.94
B) $9,411.26
C) $9,305.38
D) $9,687.79
E) $9,550.30

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1b_d83c_a768_2910cc92b760_TB2902_11 PV = 800 × 11ea7fdb_fc1b_d83d_a768_75bd15d9e22a_TB2902_11 = $9,175.94
Using a financial calculator:
N = 20, I/Y = 6, PMT = -800, FV = 0, cpt PV = $9,175.94

You Expect to Receive $800 at the End of Each