Please Help Me?

0 ⤊

Simmons Company has just purchased equipment that requires annual
payments of $5,000 to be paid at the end of each of the next 4
years. The appropriate discount rate is 15%. What is the present
value of the payments?

2007-02-04 15:46:37 · 3 answers · asked by russell s 3 in Education & Reference ➔ Homework Help

3 answers

Use the formula A = Pe^rt

A=5000e^.15*4

A=5000e^.6

A=5000*1.8

A=9000

So the answer is $9,000

2007-02-04 15:52:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋

i got 4250. if 15% is a discount it should be deducted from the total right? and 15% of 5000 is 750. so, 5000 minus 750 is 4250. hope that is what you meant....

2007-02-04 15:53:13 · answer #2 · answered by BJC 4 · 0⤊ 0⤋

$5750.00

2007-02-04 15:49:48 · answer #3 · answered by cqsteves 2 · 0⤊ 0⤋