Answer:
PV= $86,998,184.72
Step-by-step explanation:
Giving the following information:
Annual payments= $17,285,714.29
Number of years= 7
Interest rate= 9%
First, we need to determine the future value incorporating the interest rate.
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {17,285,714.29* [(1.09^7) - 1]} / 0.09
FV= $159,036,085.1
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 159,036,085.1/1.09^7
PV= $86,998,184.72
