Question: Please show work! Answer in dollars and only two units after the decimal a) A lump sum of $14,000 is to be received 6 yrs
Please show work! Answer in dollars and only two units after the decimal a) A lump sum of $14,000 is to be received 6 yrs from now (t=6). What is its present value today at an expected return of 12% per year?
b) An annuity pays $800 per year for 12 yrs, first payment starts a year later (t=1). What is its present value today at an expected return of 8% per year?
c) An annuity pays $300 per yr for 13 yrs, first payment starts a yr later (t=1). What is future value 13 yrs from now at 8% expected return per yr?
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