You have just received a windfall from an investment you made in a friend's business. She...
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You have just received a windfall from an investment you made in a friend's business. She will be paying you $27,344 at the end of this year, $54,688 at the end of next year, and $82,032 at the end of the year after that (three years from today). The interest rate is 5.5% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? You have just received a windfall from an investment you made in a friend's business. She will be paying you $27,344 at the end of this year, $54,688 at the end of next year, and $82,032 at the end of the year after that (three years from today). The interest rate is 5.5% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
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