A wealthy woman just died and left her pet cats the following estate: $50,000 per year for the next 15 years with the first cash flow today. At a discount rate of 3.2%, what is the feline estate worth in today's dollars?
A) $588,352.84
B) $607,180.14
C) $750,000.00
D) $774,000.00
Answer: B
Explanation: B)
PV = PMT × × (1 + r)1
= $50,000 × × (1.032)1 = $607,180.14.
MODE = BEGIN
INPUT 15 3.2 ? -50,000 0
KEY N I/Y PV PMT FV
CPT 607,180.14
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