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Constance K | 12,000 each year for the next ten years at 12% interest what is the present value? |
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redd1673
|
678678.979% |
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NHMike
|
PV of 12,000 received in each of 10 years at a 12% discount rate is $67,802.68
So, with a 12% rate you should be indifferent in taking $67,802.68 today vs $12,000 per year for 10 years |
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ExperiencedMum
 |
I'd suggest you go to a banking website and check out their tools and calculators. I like the ones at ING. This is one for their long term investment calculator, but they have others, too: http://home.ingdirect.com/privacy/privacy.asp?s=LongTermInvestment |
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a dangerous mind
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since you get the same 12000 each year, 12 % shud be simple interest
the present value is 100,000 |
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xhenxhe
 |
Approximately $305,198.08 |
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priyank
 |
100000 |
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