Consider an investment that will return $1,500 at the end of every year for the next 45 years. The discount rate is 6%. What is the present value of this series of cash flows?

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asked Feb 15, 2021 9.1k views

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Evaldas Buinauskas · Answer 1 · 2021-02-21T06:49:37+0000

Answer:

108.98

Step-by-step explanation:

Present Value Formula

Present value is compound interest in reverse: finding the amount you would need to invest today in order to have a specified balance in the future. Among other places, it's used in the theory of stock valuation.

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Consider an investment that will return $1,500 at the end of every year for the next 45 years. The discount rate is 6%. What is the present value of this series of cash flows?

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