Your uncle offers you a choice of $105,000 in 10 years or $47,000 today. If money is discounted at 9 percent, which should you choose?
Answer to relevant QuestionsYour father offers you a choice of $105,000 in 12 years or $47,000 today. a. If money is discounted at 8 percent, which should you choose?b. If money is still discounted at 8 percent, but your choice is between $105,000 in ...Mrs. Crawford will receive $7,600 a year for the next 19 years from her trust. If a 14 percent interest rate is applied, what is the current value of the future payments?Christy Reed has been depositing $2,000 in her savings account every December since 2001. Her account earns 7 percent compounded annually. How much will she have in December 2012? (Assume that a deposit is made in December ...What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 12 percent. You wish to retire in 14 years, at which time you want to have accumulated enough money to receive an annual annuity of $17,000 for 19 years after retirement. During the period before retirement you can earn 8 percent ...
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