Question: Chapter 4, Sandbox Problem 20 In the same spirit as the prior question, using a handheld (5 button) financial calculator, compute the present value of
Chapter 4, Sandbox Problem 20 In the same spirit as the prior question, using a handheld (5 button) financial calculator, compute the present value of the following annuity stream. The first payment occurs in one year, and the last payment occurs 10 years from today. The first payment will be $178. Subsequent payments will grow at an annual rate of 4.9% In addition, you'll also receive a single "lump sum" payment of $7, 4 years from today. Use an effective annual rate (EAR) of 11.2%, to comute the overall PV of the payments. Enter your answer as a positive value, in dollars and cents. Hint: For the annuity stream, you'll need to use the "g = trick" AND the "A-trick"- as discussed in the chapter. You should check your answer by hand before entering your final answer. Answered ct Answer 1.253.14 margin of error +/- 1%
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