Unformatted text preview: today to cover the estimated cost after 20 years? In other words, calculate the present value “P” at time zero of $70 million 20 years from today for an interest rate of 9% compounded annually. What uniform series of payments at the end of periods 1 through 20 would also cover the year 20 cost? Use the same annual interest rate of 9%. 2. Calculate the present value, “P” at time zero and the corresponding future value “F” at the end of year three for a series of $15,000 payments to be made at the end of each of years one, two and three. Assume that no payment is realized at time zero. Us a nominal interest rate of 9% compounded annually. 3. An investor has a series of three $15,000 payments expected to be realized at the end of each of evaluation years three, four and five. Calculate the present value “P” at time zero, and the corresp...
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This document was uploaded on 03/27/2014.
 Spring '14

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