You are evaluating a scenario that involves receiving a series of 50 annual payments , starting two years from now . The initial payment of $ 300 will be followed by payments growing with a geometric gradient of g = 0.5 % . Given an interest rate of 5.5 % , what is the present value ( P ) of the series ?

You are evaluating a scenario that involves receiving a series of 50 annual payments , starting two years from now . The initial payment of $ 300 will be followed by payments growing with a geometric gradient of g = 0.5 % . Given an interest rate of 5.5 % , what is the present value ( P ) of the series ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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