Yamilette.Hernandez1
New member
- Joined
- May 8, 2010
- Messages
- 1
A. 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?
The answer is as follows. But how do I get the "7.222"????
PV=FV * PVIF
PV: ? FV: 11,000 PVIF: 10y/5%
PV=11,000 * 7.222
PV=$84,942
The answer is as follows. But how do I get the "7.222"????
PV=FV * PVIF
PV: ? FV: 11,000 PVIF: 10y/5%
PV=11,000 * 7.222
PV=$84,942