Answer:
The present value at the beginning of the ninth year of all remaining payments is 316.09
Explanation:
It is assumed that it is an ordinary annuity.
First, we need to calculate the final payment.
Use the following formula to calculate the final payment
Final Payment When an annuity is ordinary
Final payment = fv(rate,nper,pmt,pv) * (1+3.5%)
Where
rate = 3.5%
nper = 11
pmt = 100
pv = -1,000
Placing values in the formula
Final payment = fv(3.5%,11,100,-1000)*1.035
Final payment = $150.87
Now calculate the present value at the beginning of the ninth year of all remaining payments.
Present Value = ( Ninth payment / ( 1 + interest rate )^9 ) + ( Tenth payment / ( 1 + interest rate )^10 ) + ( Eleventh payment / ( 1 + interest rate )^11 ) + ( Final payment / ( 1 + interest rate )^11 )
Present Value = ( 100 / ( 1 + 3.5% )^9 ) + ( 100 / ( 1 + 3.5% )^10 ) + ( 100 / ( 1 + 3.5% )^11 ) + ( 150.87 / ( 1 + 3.5% )^11 )
Present Value = 73.37 + 70.89 + 68.49 + 103.34
Present Value = 316.09
