Your crazy uncle left you a trust that will pay you $39,000 per year for...
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Accounting
Your crazy uncle left you a trust that will pay you $39,000 per year for the next 30 years with the first payment received one year from today. If the appropriate interest rate is 7.2 percent, what is the value of the payments today?
answer $474,386.27
How do I get to this answer from the information granted?
one formula that can be used is: PV = $39,000[(1 1/1.072030)/.0720] = $474,386.27 but I do not understand the formula.
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