What is the value today of $3,100 per year, at a discount rate of 9 percent, if the first payment is received 5 years from today and the last payment is received 15 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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Expert's answer
2020-05-08T14:47:21-0400
Present value of annuity for 10 years ="\\frac{1-(1+0.09)^{-10}}{0.09}\\times3100"
=19894.74
Present value for 5 years = "\\frac{19894.74}{(1+0.09)^5}"
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