Question

An investment pays $10,000 at the end of year 1, $15,000 at the end of year 2, and $20,000 at the end of year 3. If the interest rate is 3.5%, what is the present value of this series of payments? $43,381.43 $45,000.00 $41,703.35 $40,183.29

Name: an investment pays 10000 at the end of year 1 15000 at the end of year 2 and 20000 at the end of year 3 if the interest rate is 35 what is the present value of this series of payments 433814 39111
Uploaded: 2022-12-01T14:47:36-08:00
Duration: 2 min 33 s
Channel: Madhur L
Description: an investment pays 10000 at the end of year 1 15000 at the end of year 2 and 20000 at the end of year 3 if the interest rate is 35 what is the present value of this series of payments 433814 39111

          An investment pays $10,000 at the end of year 1, $15,000 at the end of year 2, and $20,000 at the end of year 3. If the interest rate is 3.5%, what is the present value of this series of payments?
$43,381.43
$45,000.00
$41,703.35
$40,183.29

an investment pays 10000 at the end of year 1 15000 at the end of year 2 and 20000 at the end of year 3 if the interest rate is 35 what is the present value of this series of payments 433814 39111

Added by Adri-N P.

Horngren’s Cost Accounting

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

Instant Answer

Solved by Expert Madhur L

12/01/2022

Step 1

The present value (PV) of a future payment is given by the formula: $PV = \frac{FV}{(1 + r)^n}$ where FV is the future value, r is the interest rate, and n is the number of years. For the $10,000 payment at the end of year 1: $PV_1 = \frac{10000}{(1 + 0.035)^1} = Show more…

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An investment pays $10,000 at the end of year 1, $15,000 at the end of year 2, and $20,000 at the end of year 3. If the interest rate is 3.5%, what is the present value of this series of payments? $43,381.43 $45,000.00 $41,703.35 $40,183.29