1. A company has just sold a product with the following payment plan: 
2. $75,000 today
3. $50,000 at the end of year 1
4. $25,000 at the end of year two. 
5. 
   
6. If the payments are deposited into an account earning 4.5% per year, calculate the value at the end of year 2.

Answer rating: 100% (QA)

To calculate the value at the end of year 2 we can determine the future value of each payment separa... View the full answer