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An annuity pays out $`20000` per year. Because of inflation, each year one dollar is worth what $`0.96` was worth the previous year.
The payment is made at the beginning of each year.
What is the present value of the annuity if it pays out for three years (starting immediately)?
What is the present value of the annuity if it pays out for ten years?
What is the present value of the annuity if it pays out forever?
What is the present value of the annuity if it pays out for three years (starting immediately)?
What is the present value of the annuity if it pays out for ten years?
What is the present value of the annuity if it pays out forever?
Box 1: Enter your answer as a number (like 5, -3, 2.2172) or as a calculation (like 5/3, 2^3, 5+4)
Enter DNE for Does Not Exist, oo for Infinity
Box 2: Enter your answer as a number (like 5, -3, 2.2172) or as a calculation (like 5/3, 2^3, 5+4)
Enter DNE for Does Not Exist, oo for Infinity
Box 3: Enter your answer as a number (like 5, -3, 2.2172) or as a calculation (like 5/3, 2^3, 5+4)
Enter DNE for Does Not Exist, oo for Infinity