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What is the current value of the future payments

You will recieve $8500 per year for the next 15 years from an insurance policy. If a 7% interest rate is applied, what is the current value of the future payments? what is the current value? Which payment would you take=the lumpsum current value or the annual payments?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the current value of the future payments

Reference No:- TGS0675541

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Npv and the irr for outlay

Q : What is the firm-s horizon or terminal value

Q : What was the length of the operating cycle

Q : Current price of bond m and bond n

Q : What is the current value of the future payments

Q : Criminal behavior in urban areas

Q : Find price of two-year coupon bond with coupon rate

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the current value of the future payments

Reference No:- TGS0675541

Recent Questions Asked Finance Basics

Q : Npv and the irr for outlay

Q : What is the firm-s horizon or terminal value

Q : What was the length of the operating cycle

Q : Current price of bond m and bond n

Q : What is the current value of the future payments

Q : Criminal behavior in urban areas

Q : Find price of two-year coupon bond with coupon rate

Q : Question about the debt-equity ratio

Q : Women in islam

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