document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1195214>Question 1195214</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A man agrees to make $5000 payments at the ends of the first 5 years, $4000 at the ends of the next 5 years, and $3000 at the ends of the next 5 years. If money is worth 4%, find the present value of this agreement. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #827679 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=827679\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> interest rate is 4% per year.<BR>\n" );
document.write( "growth factor is 1.04 per year.<BR>\n" );
document.write( "present value of cash flow is equal to $45,917.88 <BR>\n" );
document.write( "i used excel to do the calculations.<BR>\n" );
document.write( "see below:<BR>\n" );
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document.write( "the present value of all cash flows are brought back to end of year 0.<BR>\n" );
document.write( "for example, 3000 dollar cash flow at end of year 15 is divided by 1.04^15 to get present value of 1665.793508 which is displayed as 1665.79.<BR>\n" );
document.write( "let me know if you have any questions.<BR>\n" );
document.write( "theo </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );