$1 million to be paid in exactly one year, plus 10 years of monthly payments of $5,000,...

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$1 million to be paid in exactly one year, plus 10 years of monthly payments of $5,000, with the first of the monthly payments to be made exactly 18 months from now. If the discount rate embedded in the settlement negotiations was 4.8 percent APR, compounded monthly, what is the present value (i.e., the value as of today) of the settlement agreement?

Posted Date: Apr 27, 2024 06:03 AM

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$1 million to be paid in exactly one year, plus 10 years of monthly payments of $5,000,...

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To solve this problem we need to calculate the present value of the lumpsum payment and the prese... View the full answer

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