Fight Finance

Question 1087  Annuity, NPV

Find the present value of 30 annual payments of $4,000 per annum where the first payment is made 11 years from now. So there are 30 annual payments from t=11 to t=40 inclusive. The discount rate is 7% pa. The present value of these payments is:

(a) $53,576.48

(b) $25,232.51

(c) $23,581.78

(d) $3,816.02

(e) $1,766.28