Almost all union members pay dues. A union member has $5.50 deducted from his paycheck each week for union dues, and has done so
1 answer:
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Answer:
Present value of the cashflow discounted at 5% per year 76,815.65
Explanation:
First, we calculate the present value of the 4 years 15,000 dollar annuity:
C 15,000.00
time 4
rate 0.05
PV $53,189.2576
Now, we discount two more year as lump sum as this is two year after the invesmtent:
Maturity 53,189.26
time 2.00
rate 0.05000
PV 48,244.2245
Finally we also discount the 30,000 by one year
30,000 / 1.05 = 28571.43
<em><u>We add up both to get the present value:</u></em>
48,244.22 + 28,571.43 = 76,815.65