Question

An investment is expected to earn you $3,000 each quarter for the next 15 years. If the appropriate discount rate is 7%, how much is this investment worth today? Round to the nearest dollar.

Answer 1

Step-by-step explanation:

Assuming the first payment is at the end of the period

`p*(1-(1+i)^(-n))/(i)\\i=.07/4= .0175\\n=15*4=60\\3000*(1-(1+.0175)^(-60))/(.0175)= 110891.956546= 110892`