Question

What is the present value of $4,000 per year, at a discount rate of 10 percent, if the first payment is received six years from now and the last payment is received 20 years from now? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Answer 1

Discounting formula for (example) year 6 = ($4000) / [(1 + 10%) ^ 6]

Similarly we have discounted for other years for present value individually.