# Question: What is the present value of 2 500 per year at

What is the present value of $2,500 per year, at a discount rate of 8 percent, if the first payment is received 7 years from now and the last payment is received 30 years from now?

## Answer to relevant Questions

Given an interest rate of 8.2 percent per year, what is the value at date t = 7 of a perpetual stream of $2,100 payments that begin at date t = 15? Prepare an amortization schedule for a three-year loan of $69,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest ...This problem illustrates a deceptive way of quoting interest rates called add-on interest . Imagine that you see an advertisement for Crazy Judy’s Stereo City that reads something like this: “$2,000 Instant Credit! 17% ...Locate the Treasury bond in Figure 5.4 maturing in February 2039. Is this a premium or a discount bond? What is its current yield? What is its yield to maturity? What is the bid-ask spread? Osbourne, Inc., has an odd dividend policy. The company has just paid a dividend of $12 per share and has announced that it will increase the dividend by $3 per share for each of the next five years, and then never pay ...Post your question