Question: If the interest rate is 7 % , the present value of $ 1 4 0 0 to be received 2 years from today is

If the interest rate is

7 %,

the present value of $

1400

to be received

2

years from today is $

1222.81 . (

Round your response to the nearest two decimal place

)

You are in a car accident, and you receive an insurance settlement of $

5500

per year for the next three years. The first payment is to be received today. The second payment is to be received one year from today, and the third payment two years from today. If the interest rate is

4 %,

the present value of the insurance settlement is

q, (

Round your response to the nearest two decimal place

)

If the interest rate is 7%, the present value of $1400

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