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Suppose you charge me a 9%annual interestrate and i promise to pay you $3,000 a year for four years(first payment is one year from today)plus $9,000 five years from now. how much is this stream of cash
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Suppose you charge me a 9%annual interestrate and i promise to pay you $3,000 a year for four years(first payment is one year from today)plus $9,000 five years from now. how much is this stream of cash flows worth today

User Jeromy French
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PW = 3000×(((1.09^4)-1)÷(.09×1.09^4) + 9000×1.09^-5 = $15568.50
User Brian Oliver
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