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FinanceQ&A LibraryCalculating Annuity Present Value An investment offers $4.600 per year for 15 years. with the first payment occurring one year from now. If the required return is 8 percent. what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?Question

Asked Nov 17, 2019

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Calculating Annuity Present Value An investment offers $4.600 per year for 15 years. with the first payment occurring one year from now. If the required return is 8 percent. what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?

Step 1

**Calculation of Value of Investment:**

The value of investment is **$39,373.60**.

The value of investment at 40 years is **$54,853.22**.

The value of investment at 75 years is **$57,320.99**.

The value of investment forever is **$57,500.00**.

**Excel Spreadsheet:**

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