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24 August, 23:57

What is the present value of $4,900 per year at a discount rate of 10 percent if the first payment is received 6 years from now and the last payment is received 20 years from now?

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  1. 25 August, 01:28
    0
    17640

    Step-by-step explanation:

    at a discount of 10% per year $4900 is equal to $490 per year

    payment started 6 years ago from now and ended 20 years from now

    therefore there is an accumulation of 26 years

    for 26 years = 26 * $490 = $12740

    present value therefore = $4900+$12740=$ 17640
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