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?

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!