Math  /  Word Problems

QuestionA company offers \$52,000 now for \$7,000 annual payments over 10 years. Find the present value at 7% interest.

Studdy Solution
Calculate the present value of the annuity.
VA=$7,000×7.024=$49,168VA = \$7,000 \times7.024 = \$49,168The present value of the annual payments, if you estimate the time value of money at7 percent, is $49,168.

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