Answer:
$217,866.12
Explanation:
Using the annuity payment formula
P = r(PV)/[1 - (1 + r)^ -n]
Where
r is rate per period = 49% = 0.049
PV is present value = ?
P is the payment = $16000
n is the number of periods = 1
Therefore
$16000 = 0.049PV / (1 − 1.0490)^-1
= 0.049PV = $16000 × (1 - 1/1.049)
Make PV the subject
PV = $16,000 × [(1 −1/1.049)/0.049]
= $217,866.12
