Question: what is the pv how pv factor calculated here ? how the imputed interest calculated here ? Assume that someone has won a prize. The
Assume that someone has won a prize. The prize is $50,000, to be paid semiannually over the next 5 years. If the K is 8% annually, calculate the PV of the prize!!! Payment =$5000 PV=$5000PV Factor (Annuity, n=10,k=4% ) $50008.11=$40550 Return (Imputed Interest) =$9450/10=945 dollar per payment Quick Question: Whichever would be larger out of the following: 1) PV of 5 payments, annually at 10%. 2) PV of semiannual 10 payments at 10% 3) PV of lump sum of the same amount in 1 and 2 received after 5
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