Question

An investment has an expected return of 1.43 percent per month, is expected to make monthly payments of $X for 20 months, is worth $168,493, and the first payment is expected later today. What is X? Input instructions: Round your answer to the nearest dollar.

Name: an investment has an expected return of 143 percent per month is expected to make monthly payments of x for 20 months is worth 168493 and the first payment is expected later today what is x 48662
Uploaded: 2023-08-15T03:27:06-08:00
Duration: 1 min 17 s
Channel: Narayan Hari
Description: an investment has an expected return of 143 percent per month is expected to make monthly payments of x for 20 months is worth 168493 and the first payment is expected later today what is x 48662

          An investment has an expected return of 1.43 percent per month, is expected to make monthly payments of $X for 20 months, is worth $168,493, and the first payment is expected later today. What is X?
Input instructions: Round your answer to the nearest dollar.

Added by Christopher R.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Narayan Hari

08/15/2023

Step 1

The formula for the present value of an annuity due is: \[ PV = X \times \left(1 + r\right) \times \frac{1 - (1 + r)^{-n}}{r} \] Where: - $ PV $ is the present value of the annuity (which is $168,493), - $ r $ is the monthly interest rate (1.43% or Show more…

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An investment has an expected return of 1.43 percent per month, is expected to make monthly payments of $X for 20 months, is worth $168,493, and the first payment is expected later today. What is X? Input instructions: Round your answer to the nearest dollar.