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?

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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?

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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.

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