A wealthy business man promises to donate $6,694.00 to charity every quarter for 10 years (at the

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Question:

A wealthy business man promises to donate $6,694.00 to charity every quarter for 10 years (at the start of every period). The current interest rate is 8.370% compounded semi-annually, but it is projected to change to 9.310% (still compounded semi-annually) after 6 years. What is the present value of the donation based on this projection?

a. None of the other answers is correct

b. X = $165,476.03.

c. X = $167,274.68.

d. X = $183,462.55.

e. X = $179,865.25.