Problem:
You are scheduled to receive annual payments of $5,100 for each of the next 7 years. The discount rate is 10 percent.
Required:
Question: What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?
- $2,483
- $2,513
- $2,721
- $2,727
- $2,804
Note: Provide support for your rationale.