On Joe Martin's graduation from college, Joe's uncle promised him a gift of $12,700 in cash...
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On Joe Martin's graduation from college, Joe's uncle promised him a gift of $12,700 in cash or $830 every quarter for the next 5 years after graduation. Assume money could be invested at 8% compounded quarterly (Use Table 13.2) a. Calculate the present value of options. (Do not round intermediate calculations. Round your answers to the nearest cent.) Present value Option 1 Option 2 b. Which offer is better for Joe? O Option 2 O Option 1 On Joe Martin's graduation from college, Joe's uncle promised him a gift of $12,700 in cash or $830 every quarter for the next 5 years after graduation. Assume money could be invested at 8% compounded quarterly (Use Table 13.2) a. Calculate the present value of options. (Do not round intermediate calculations. Round your answers to the nearest cent.) Present value Option 1 Option 2 b. Which offer is better for Joe? O Option 2 O Option 1
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