Answered: 4. Mr. Thomas will receive $8,500 a…

4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 12EA: Your friend has a trust fund that will pay her the following amounts at the given interest rate for...

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4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a
7 percent interest rate is applied, what is the current value of the future payments if
first receipt occurs today?

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