Question: why are we using the Present value formula and not the future value formula? 2. On Abby Ellen's graduation from law school, Abby's uncle, Bull

why are we using the Present value formula and not the

why are we using the Present value formula and not the future value formula?

2. On Abby Ellen's graduation from law school, Abby's uncle, Bull Brady, promised her a gift of $24,000 or $2,400 every quarter for the next 4 years after graduating from law school. If the money could be invested at 6% compounded quarterly, which offer should Abby choose? [[LU 16periods,=1%46%21PVoa=$2,400[(1(1/(1+.015)16))/.015]=$33,91

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