Calculate the present value of the streams


Assuming an interest rate of 10%, calculate the present value of the following streams of yearly payments

1) $1,000 per year, forever, with the first payment one year from today

2) $500 per year, forever, with the first payment two years from today

3) $2,420 per year, forever, with the first payment three years from today

I do not know how to encorporate the time factor to this problem - I know the forumla is

PV = C/R - so I know that a = 1000/0.1 = 10,000

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Finance Basics: Calculate the present value of the streams
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