Given an interest rate of 6.4 percent per year, what is the value at Year 8 of a

Question

Given an interest rate of 6.4 percent per year, what is the value at Year 8 of a perpetual stream of $3,150 payments that begin at Year 19? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Given an interest rate of 6.4 percent per year, what is the value at Year 8 of a perpetual stream of $3,150 payments that begin at Year 19? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Present value=3150*0.608=1915.2

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