Carrie Tune will receive $18,500 a year for the next 19 years as payment for a s
ID: 2469500 • Letter: C
Question
Carrie Tune will receive $18,500 a year for the next 19 years as payment for a song she has just written. If a present 12 percent discount rate is applied: (Use a Financial calculator to arrive at the answers.Round the final answers to the nearest whole dollar.
calculate present value and calculate present value if payments will be made at the beginning of each year.
Carrie Tune will receive $18,500 a year for the next 19 years as payment for a song she has just written. If a present 12 percent discount rate is applied: (Use a Financial calculator to arrive at the answers.Round the final answers to the nearest whole dollar.
calculate present value and calculate present value if payments will be made at the beginning of each year.
Explanation / Answer
present value=18,500*7.364=$136,234.
present value if payments will be made at the beginning of each year=18,500+18,500*7.24=$152,440.