After a protracted legal case, Joe won a settlement that will pay him $11,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how much should the court invest today, assuming end of year payments, so there will be nothing left in the account after the final payment is made?
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finance problem
- Thread starter mzmundy
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First, define a variable for the parameter you need to find.mzmundy said:After a protracted legal case, Joe won a settlement that will pay him $11,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how much should the court invest today, assuming end of year payments, so there will be nothing left in the account after the final payment is made?
let
# Investment by court = C
Please show us your work, indicating exactly where you are stuck - so that we know where to begin to help you.
How far did YOU get with this?mzmundy said:After a protracted legal case, Joe won a settlement that will pay him $11,000 each year at the end of the year for the next ten years. If the market interest rates are currently 5%, exactly how much should the court invest today, assuming end of year payments, so there will be nothing left in the account after the final payment is made?
We can't tell you if your work is correct if we can't see it :shock: