Patterns of Payment with a Deferred Annuity Time value of money problems may revolve around a number of different payment or receipt patterns. Not every situation will involve a single amount or an...

How are the discount values on determined? (0.926, 0.857, and 0.794).

0.926 24926 1. $1,000 1,714 0.857 2,000 %3D 2. 2,382 0.794 %3D 3,000 3. $5,022 PV at time = 0 "/>
Extracted text: Patterns of Payment with a Deferred Annuity Time value of money problems may revolve around a number of different payment or receipt patterns. Not every situation will involve a single amount or an annuity. For example, a contract may call for the payment of a different amount each year over a three-year period. To determine present value, each payment is discounted to the present and then summed. (Assume 8% discount rate) 10 PV Factor n Payment X PV п of (1 +i)" >0.926 24926 1. $1,000 1,714 0.857 2,000 %3D 2. 2,382 0.794 %3D 3,000 3. $5,022 PV at time = 0