Asked by April
                I need help my homework and when I post I don't get an response what do I have to do for someone look at my homework question.
Lincoln Memorial hospital has just been informed that private donor is willing to contribute $5 million per year at the beginning of each year for fifteen years. What is the current dollar value of this contribution if the discount rate is 9 percent?
            
        Lincoln Memorial hospital has just been informed that private donor is willing to contribute $5 million per year at the beginning of each year for fifteen years. What is the current dollar value of this contribution if the discount rate is 9 percent?
Answers
                    Answered by
            Ms. Sue
            
    Our tutors are all volunteers and answer questions when they have time.  Please be patient.  I haven't seen any tutors online who could answer your questions for several hours.  Some tutors work late at night; others work first thing in the morning.
 
    
                    Answered by
            Reiny
            
    The standard present value of an annuity formula assumes that the payment is made at the end of a period, yours is made at the beginning, so
PV = 5million + 5million( 1 - 1.09)^-14)/.09
= $ 43,930,751.94
notice the first term is 5 million, plus I added the other 14 payments.
    
PV = 5million + 5million( 1 - 1.09)^-14)/.09
= $ 43,930,751.94
notice the first term is 5 million, plus I added the other 14 payments.
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