Question

What is the present value of $3,500 per year for 9 years discounted back to the present at 11 percent?

The present value of $3,500 per year for 9 years discounted back to the present at 11 percent is__$

Please show your work.

Answer 1

The present value of $3,500 per year for 9 years discounted back to the present at 11 percent is $ 19380

Amount (F) = $ 3500 per year

Discount rate = 11%

Time period = 9 years

Year	Amount	PVF (11%)	Present value
1	3500	0.9009009	3153.15
2	3500	0.8116224	2840.68
3	3500	0.7311914	2559.17
4	3500	0.6587310	2305.56
5	3500	0.5934513	2077.08
6	3500	0.5346408	1871.24
7	3500	0.4816584	1685.80
8	3500	0.4339265	1518.74
9	3500	0.3909248	1368.24
Present Value of Cash flow			19379.67