How can the following question be solved using a financial calculator? Given your annual required rate of

How can the following question be solved using a financial calculator?

 

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Given your annual required rate of return of 8%, how much are you willing to pay for a security that will pay nothing for three years then pays $20,000/year (at year end) for three years. Given your annual required rate of return of 8%, how much are you willing to pay for a security that will pay nothing for three years then pays $20,000/year (at year end) for three years.

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1 Calculate the present value of the cash flows after three years ie the annuity PV ... View the full answer