The present value of his investment is $113501.94.
What is investment?
An investment is a valuable item bought with the intention of increasing one's wealth. While stocks, bonds, and real estate are frequently included when discussing investments.
Present Value of an Annuity Due is equal to C + C*[1-(1+i)^-(n-1)]/i]
C = Periodic Cash Flow ($624)
i = interest rate per period =4.2%/12 =0.35%
n=number of period=24×12 =288
= $624+624[1-(1+0.0035)^-(288-1) /0.0035]
= $624+624[1-(1.0035)^-287 /0.0035]
= $624+624[(0.6331)] /0.0035
= $113501.94
As a result, $113501.94 is the correct answer.
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