Calculating present worth of the future payments
Not what you're looking for?
Your parents are giving you $500 a month for five years while you attend college to earn both a bachelor's and a master's degree. At a 7 percent discount rate, what are these payments worth to you when you first enter college?
Please
1) solve by hand (please show formula) and
(2) provide financial calculator inputs and check answer.
Purchase this Solution
Solution Summary
The solution describes the steps to calculate present worth of the future payments with the help of formula and with the help of financial calculator.
Solution Preview
Monthly Interest rate=i=7%/12
Monthly Payments=C=$500
Number of ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.