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What is the present value of a series of payments

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What is the present value of a series of payments received each year forever, starting with $1,300 paid one year from now and the payment growing in each subsequent year by 7%? Assume a discount rate of 9%.

An employee's compensation includes an annuity with 9 annual payments that pays $95,000 at retirement, with each subsequent payment growing by 5%. The firm's policy is to pre-fund such annuities one year before retirement. At an interest rate of 7%, how much would the firm need to invest?

An employee's compensation includes an annuity that pays $110,000 at retirement, with each subsequent annual payment growing by 2% for a total of 8 payments overall. The firm's policy is to pre-fund such annuities before retirement. At an interest rate of 5%, how much would the firm need to invest 3 years before retirement?

Please round your answer to the nearest hundredth.

Reference no: EM133004030

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