Question: Please Answer both part A and B: You have just received a windfall from an investment you made in a friend's business. She will be

Please Answer both part A and B: You have just received a windfall from an investment you made in a friend's business. She will be paying you $10,000 at the end of this year, $20,000 at the end of next year, and $30,000 at the end of the year after that (3 years from today). The interest rate is 7.7% per year.
a. What is the present value of your windfall?
b. What is the future value of your windfall in 3 years(on the date of the last payment)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!