What is the value of an investment that pays $22,000 every other year forever, i

Question

What is the value of an investment that pays $22,000 every other year forever, if the first payment occurs one year from today and the discount rate is 15 percent compounded daily? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What is the value today if the first payment occurs four years from today? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What is the value of an investment that pays $22,000 every other year forever, if the first payment occurs one year from today and the discount rate is 15 percent compounded daily? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

value is

v = 22000 / e^.15 + 22000/e^.15*3 + .....

v * e^.15*2 - 22000 * e^.15 = 22000/e^.15 + ...... = v

v*( e^.15*2 - 1 ) = 22000 * e^.15

v = $73,059.05

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