You are scheduled to receive annual payments of $15,000 for each of the next 13 years. The discount rate is 9 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?© BrainMass Inc. brainmass.com June 3, 2020, 9:15 pm ad1c9bdddf
Let us find out the present value in each of the cases
If the amount is received at the end
P=present value, A= Annuity ...
This solution calculates the difference in the present value when one receives payments at the beginning of each year rather than the end of the year based on a 9 percent discount rate.