What is the present value of these payments if the discount


Carrie Tune will receive $19,500 for the next 20 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a. What is the present value of these payments if the discount rate is 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value $   

b. Should she be willing to sell out her future rights now for $160,000?

Yes

No

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Financial Management: What is the present value of these payments if the discount
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