Question: PLEASE ANSWER A,B, & C Present value (with changing interest rates). Marty has been offered an injury settlement of $8,000 payable in 5 years. A:

PLEASE ANSWER A,B, & C

Present value (with changing interest rates). Marty has been offered an injury settlement of $8,000 payable in 5 years.

A: He wants to know what the present value of the injury settlement is if his opportunity cost is 3.5%. (The opportunity cost is the interest rate in this problem.)

B: What if the opportunity cost is 6.5%?

C: What if it is 11%?

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