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# Present Value & Annual Dividend

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What is the present value of a contract that promises to make year end payments to you of \$100 for the next 20 years if the interest rate is 5%? The level payments (PMT) are \$100 and we know the interest rate and the duration of the contract.

Suppose you are willing to pay \$30 today for a share of stock which you will expect to sell at the end of year one for \$32. If you require and annual rate of return of 12%, what must be the amount of the annual dividend which you expect to receive at the end of year one?

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Present Value & Annual Dividend
What is the present value of a contract that promises to make year end payments to you of \$100 for the next 20 years if the interest rate is 5%? The level payments (PMT) are \$100 and we know the interest rate and the duration of the contract.

PVA = W x 1 - 1 where PVA ...

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This solution is comprised of a detailed explanation to answer what is the present value of a contract that promises to make year end payments to you of \$100 for the next 20 years if the interest rate is 5%.

\$2.19