Question: Using either the Present Value formaula or the Future Value formula, how do I solve the following problem? Show all work! PV(CF) = CF /

Using either the Present Value formaula or the Future Value formula, how do I solve the following problem? Show all work!

PV(CF) = CF / (1+r)ⁿ

FV(CF) = CF * (1+r)ⁿ

Your friend offers to pay you $20,000 at the end of each year for 4 years in exchange for cash today. The annual interest rate is 5%. What is the maximum amount of cash you should provide to your friend? (Draw a timeline and show your work.)

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