Answer:
PV= $20,687,178.19
Explanation:
Giving the following information:
Annual payments= $1,800,000
Number of periods= 15 years
Interest rate= 3.53%
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {1,800,000*[(1.0353^15) - 1]} / 0.0353
FV= $34,809,233.92
Now, the present value:
PV= FV/(1+i)^n
PV= 34,809,233.92 / 1.0353^15
PV= $20,687,178.19
