Peter Lynchpin wants to sell you an investment contract that pays equal $13,400 amounts at the end of each year for the next 24 years. If you require an effective annual return of 7 percent on this investment, how much will you pay for the contract today? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) Value today

P = $153689.08

Step-by-step explanation:

Present value annuity is used as today's price to solve this question and its formula is given as:

where;

C = Yearly Payment= $13,400

r =rate of interest = 7% or 0.07

n= no of years=24

P = $153689.0756

P = $153689.08   (to 2 decimal places)

find the magnitude of the trig term  

csc

(

x

)

−

1

by taking the absolute value of the coefficient.

1

find the lower bound of the range.

tap for more

y

=

−

2

find the upper bound of the range.

tap for more

y

=

0

the range is  

y

≤

−

2

or  

y

≥

0

.

(

−

∞

,

−

2

]

∪

[

0

,

∞

)

{

y

|

y

≤

−

2

,

y

≥

0

}

step-by-step explanation: