The annually compounded discount rate is 13.5%. You are asked to calculate the present value of a 16-year annuity with paymen $51,800 per year. a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at 18 months, 30 months, etc.). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value
The annually compounded discount rate is 13.5%. You are asked to calculate the present value of a 16-year annuity with paymen $51,800 per year. a. Calculate the PV if the annuity payments arrive at one-year intervals. The first payment arrives one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. Calculate the PV if the first payment arrives in six months. Following payments arrive at one-year intervals (i.e., at 18 months, 30 months, etc.). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 15P
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