A property investor receives rental payments of $1900 at the start of each month for five years. If the required rate of return is 7.2% per annum, compounded monthly, what is the value of the property investment today?
The Present Value of all the rent payments of $1,900 per month for 5 years or 60 months @ 7.2% comp.monthly comes to =$96,071.04.
If you wish to know how it is calcualted, just let us know here.
