What is the present value ie value as of today of the


Your client was recently terminated from his position as Director of the Federal Bureau of Investigation. Under the terms of his severance agreement, he will receive a severance package consisting of a payment today of $1,500,000, and then monthly payments of $30,000 each for 5 years (60 total monthly payments), with the first of the monthly payments occurring six months from today. If you use a discount rate of 4.8% APR with monthly compounding, what is the present value (i.e., value as of today) of the settlement including the payment today and the annuity payments?

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Finance Basics: What is the present value ie value as of today of the
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