Heath has won a structured settlement that will pay him $1,500 a month for 5 years. Heath has been offered a one time payment of $70,000 for the payment stream. Based on this offer what is the implied discount rate used to value his payment stream? (Enter your answer as a decimal number to 3 decimal places. So for 5.25% enter .525)

Heath has won a structured settlement that will pay him $1,500 a month for 5 years. Heath has been offered a one time payment of $70,000 for the payment stream. Based on this offer what is the implied discount rate used to value his payment stream? (Enter your answer as a decimal number to 3 decimal places. So for 5.25% enter .525)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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