Answer to Question #246304 in Economics for Sera

Question #246304

The present value of an annuity of R pesos payable annually for 8 years, with the first payment at the end of 10 years, is 187, 481.25. Draw the cash flow diagram and find the value of R if money is worth 5%.

Expert's answer

"187,481.25*1.05^{9}=R*\\frac{1-(1+0.05)^{-8}}{0.05}"

"R=45,000"

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