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Question 26 (Estimated time allowance: 7 minutes) You have just won a very...

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Accounting

Question 26
(Estimated time allowance: 7 minutes) You have just won a very special prize, a "consol"
bond that pays $40,000 every 3 months (quarterly payment) forever. The first payments is
given three months from now. You are not that enthusiastic about this and in fact, you
really want to just receive a lump-sum amount today. If the APR is 24% compounded
monthly, what is the amount you want to receive today instead? For your answer round to
the nearest thousand, do not enter the dollar ($) sign, and DO NOT use commas for the
thousands (though some problems will let you use it and some others will require it). For
example, if you obtained $230,440.75 then enter 230 ; if you obtained 4,306,000 then
enter 4306.
You can use the attached excel file which includes the formulas for TVM:
image

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