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What is the equal payment series for 10 years that is equivalent to a payment series starting with $30,000 at the end of the first year and decreasing by $3,000 XXXXXXXXXXeach year over 10 years?...

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What is the equal payment series for 10 years that is equivalent to a payment series starting with $30,000 at the end of the first year and decreasing by $3,000 XXXXXXXXXXeach year over 10 years? interest is 8% compounded annually.
Answered Same Day Dec 24, 2021

Solution

Robert answered on Dec 24 2021
123 Votes
Let the amount be A
The present value of the $30000 = $123,371.95


So, A*(1-1.08^(-10))/0.08 = $123,371.95
So A = $18386.06 per year
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