What is the present value of 2500 to be received at the beginning of each of 30 periods and discounted at 10 percent compound interest?

1 answer

Answer

1083619

2026-08-03 08:55

+ Follow

The present value of a series of payments with compound interest and payments at the end of a period can be found by the formula:

PV = c * (1-(1+i)^(-n))/i

where 'c' is the amount of the periodic payment,

n is the number of periods, and i is the interest rate per period.

Since you want to find the Present Value for payments starting at the beginning of the period, you would receive 1 payment of 2500 now, which would have a present value of 2500, plus the present value of 29 payments received at the end of the period:

PV = 2500 + 2500 * (1-(1+.10)^(-29))/(0.10) = 25924.01

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.