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You found out that now you are going to recieve payments of $10,000 for the next...

You found out that now you are going to recieve payments of $10,000 for the next 14 years. You will recieve these payments at the BEGINNING of each year. The annual interest rate will remain constant at 16%. What is the present value of these payments?

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Answer #1
Year (a) (b) (c) = (a)*(b)
Amount Discounting Factors Discounted Amount
1 10000 1/1.16^0 1 10000
2 10000 1/1.16^1 0.862069 8620.6897
3 10000 1/1.16^2 0.743163 7431.6290
4 10000 1/1.16^3 0.640658 6406.5767
5 10000 1/1.16^4 0.552291 5522.9110
6 10000 1/1.16^5 0.476113 4761.1302
7 10000 1/1.16^6 0.410442 4104.4225
8 10000 1/1.16^7 0.35383 3538.2953
9 10000 1/1.16^8 0.305025 3050.2546
10 10000 1/1.16^9 0.262953 2629.5298
11 10000 1/1.16^10 0.226684 2266.8360
12 10000 1/1.16^11 0.195417 1954.1690
13 10000 1/1.16^12 0.168463 1684.6284
14 10000 1/1.16^13 0.145227 1452.2659
Present value of the payments 63423.3381
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