His recently deceased Uncle Jimmy, may he rest in peace, has left Scott a 15-year annuity (15 annual payments). He will receive the first payment of $8,000 in 5 years from today and the payments will grow at a constant rate of 3% per year thereafter. If he is discounting at 6% (EAR), what is the present value of his inheritance?

Answer rating: 100% (QA)

To calculate the present value of Scotts inheritance we need to find the present v... View the full answer