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Bertina plans to retire in 4 years. She plans to collect annual payments of $53,800 for...

Bertina plans to retire in 4 years. She plans to collect annual payments of $53,800 for several years. Her first annual payment is expected to be received in 5 years and her last annual payment is expected in 11 years. She can earn 10.23 percent per year. How much money does Bertina expect to have in 4 years?

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Answer #1
Calculation of amount of money does Bertina expect to have in 4 years
Year Payment Discount factor @ 10.23% Present Value
5th $53,800.00         0.907194 $48,807.04
6th $53,800.00         0.823001 $44,277.46
7th $53,800.00         0.746622 $40,168.24
8th $53,800.00         0.677331 $36,440.39
9th $53,800.00         0.614470 $33,058.51
10th $53,800.00         0.557444 $29,990.48
11th $53,800.00         0.505710 $27,207.19
Amount of money does Bertina expect to have in 4 years $259,949.31
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