Answer:
PV= $42,248.28
Explanation:
Giving the following information:
Annual payment= $4,350
Number of periods= 15 years
i= 0.06
First, we need to calculate the Future Value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {4,350*[(1.06^15) - 1]} / 0.06
FV= 101,250.47
Now, we can determine the value (PV) of the investment:
PV= FV/(1+i)^n
PV= 101,250.47 / 1.06^15
PV= $42,248.28
