How much is the investment worth today

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Reference no: EM131976569

1. An investment will provide a cash flow to you of $10,000/year for 5 years, beginning 13 years from today. If the discount rate is 12%, then how much is the investment worth today? Show how to find PV of annuity.

2. A 13-year annuity pays $3,200 per month, and payments are made at the end of each month. The interest rate is 11 percent compounded monthly for the first six years, and 9 percent compounded monthly thereafter.

What is the present value of the annuity?

Reference no: EM131976569

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