Present value of payments


Problem:

During the first year, payments are made at a continuous rate of $100. Each subsequent year, the continuous payment rate decreases by $5 per year until the 10th year when the continuous annual payment rate is $55. The annual effective interest rate is 4%.

Required:

Question: Determine the present value of these payments at time 0.

Note: Please show how to work it out.

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Finance Basics: Present value of payments
Reference No:- TGS0880234

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