You will receive payments of $300 per year. The first payment will be ten years from today and thelast payment will be 32 years from today. If the yearly interest rate is 5%, what is the present valuetoday of the payments?O 2,927.41O 2,608.46O 2,824.51O 2,347.98

The time value of money means that the amount of money received in the present period will have…

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what is the present value

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 2P

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You will receive payments of $300 per year. The first payment will be ten years from today and the
last payment will be 32 years from today. If the yearly interest rate is 5%, what is the present value
today of the payments?
O 2,927.41
O 2,608.46
O 2,824.51
O 2,347.98

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