Answer:
$6524.
Step-by-step explanation:
To find the present value (PV) equivalent of $18,000 to be received in 15 years at an annual interest rate of 7%, we can use the present value formula for a single future payment:
PV = FV / (1 + r)^n
where FV is the future value, r is the interest rate per period, and n is the number of periods.
Substituting the given values into the formula, we get:
PV = 18,000 / (1 + 0.07)^15
PV = 18,000 / 2.759
Simplifying this expression gives:
PV = 6524.10
Therefore, the present value equivalent of $18,000 to be received in 15 years at an annual interest rate of 7% is approximately $6524.