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jarptica [38.1K]
3 years ago
7

What is the present value of $4,900 per year at a discount rate of 10 percent if the first payment is received 6 years from now

and the last payment is received 20 years from now?
Mathematics
1 answer:
Nesterboy [21]3 years ago
4 0

Answer:

17640

Step-by-step explanation:

at a discount of 10% per year $4900 is equal to $490 per year

payment started 6 years ago from now and ended 20 years from now

therefore there is an accumulation of 26 years

for 26 years = 26 *$490= $12740

present value therefore = $4900+$12740=$ 17640

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