Final answer:
The present value of a $46 payment in 8 years, with an annual discount rate of 11.2%, is approximately $21.63.
Step-by-step explanation:
To compute the present value of a $46 payment that is to be received in 8 years with an annual discount rate of 11.2%, we can apply the present value formula:
Present Value = Future Payment / (1 + discount rate)number of years
Using the information provided, the present value can be calculated as follows:
Present Value = $46 / (1 + 0.112)8
Present Value = $46 / (1.112)8
Present Value = $46 / 2.1261
Present Value = $21.63 (rounded to two decimal places)
Therefore, the present value of the $46 payment, discounted at an 11.2% annual rate over 8 years, is approximately $21.63.