(Answered) Problem in given question suppose that not only will the

Finance

Problem: In given Question, suppose that not only will the interest be compounded monthly, but the payments will also arrive monthly in the amount of $1,250 per month (the first payment to arrive in one month)?

Question: A real estate investor feels that the cash flow from a property will enable her to pay a lender $15,000 per year, at the end of every year, for 10 years. How much should the lender be willing to loan her if he requires a 9% annual interest rate (annually compounded, assuming the first of the 10 equal payments arrives one year from the date the loan is disbursed)?

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