Assume you recently have 6,000 in a bank. Asusume that you are going to receive 160 monthly until the day of your retirement 22 years from now. What is the present value of all these cash flows if the yearly interest rate is 6%.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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Assume you recently have 6,000 in a bank. Asusume that you are going to receive 160 monthly until the day of your retirement 22 years from now. What is the present value of all these cash flows if the yearly interest rate is 6%.

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