An investment offers $4,900 per year for 11 years, with the first payment occurr

Question

An investment offers $4,900 per year for 11 years, with the first payment occurring one year from now. If the required return is 7 percent, the present value of the investment is $. If the payments occurred for 31 years, the present value of the investment would be $. If the payments occurred for 83 years, the present value of the investment would be $. If the payments last forever, the present value would be $(Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)) -I have answers but I'm not sure if they're accurate. Please help me see if I'm doing it right by providing answers and how you got there, thanks.

Explanation / Answer

Ok I can help you with this one.

1. 4,900 * 11 * 0.93 = $50,127

2. 4,900 * 31 * 0.93 = $141,267

3. 4,900 * 83 * 0.93 = $378,231

4. 4,900 * * 0.93 = Infinity

Hope this helps, best of luck.

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