Answer:
Wow that’s a lot of numbers hold up
Explanation:
Future Value is known to be the cash value of an investment at some time in the Future.
<h3>What is Future value (FV)? </h3>
Future value (FV) is known to be the amount of a current asset at a future date due to a form of an assumed rate of growth.
This kind of value is vital to investors and financial planners, as they often make use of it in the estimation of how much an investment made today will be of a good worth in the nearby future.
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Answer:
The liability reported is closest to $107,105.21.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or the the liability reported =?
P = Annuity payment = $22,000
r = Student's desired return rate = 10%, or 0.10
n = number of years = 7
Substitute the values into equation (1) to have:
PV = $22,000 * ((1 - (1 / (1 + 0.10))^7) / 0.10)
PV = $22,000 * 4.86841881769293
PV = $107,105.21
Therefore, the liability reported is closest to $107,105.21.