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01-11-2017
Business

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What is the present value of $2,825 per year, at a discount rate of 7 percent, if the first payment is received 9 years from now and the last payment is received 22 years from now?

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12-11-2017

7% of $2,825.00 is equal to $197.75. 22 minus 9 equals 13 years. 13 times $197.75 is equal to the present value $2,570.75.

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