Abby Mia wants to know how much must be deposited in her local bank today so that she will receive yearly payments of $18,000 fo
r 20 years at a current rate of 9% compounded annually. (Use the tables in the handbook.)
1 answer:
Answer:
$164,313.82
Explanation:
In this question we have to apply the present value formula i.e to be shown in the attachment
Provided that,
Future value = $0
Rate of interest = 9%
NPER = 20 years
PMT = $18,000
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula the present value is $164,313.82
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