Question

What is the present value of $2,025 per year, at a discount rate of 7 percent, if the first payment is received 6 years from now and the last payment is received 23 years from now

Answer 1

Answer:

The correct answer is $20,369.65.

Explanation:

According to the scenario, the computation of the given data are as follows:

Payment (pmt) = $2,025

Discount rate ( rate) = 7%

Time period ( Nper) ( 6 -23 years) = 18 years

So, we can calculate the Present value by using financial calculator.

Attachment is attached below.

So, Present Value = $20,369.65