You just received a windfall from an investment you made in a friend’s business. She will pay you $22,809 at the end of this year, $45,618 at the end of next year, and $68,427 at the end of the year after that (three years from today). The interest rate is 11.5% per year.

a. What is the PV of your windfall?

b. What is the FV of your windfall in three years?

Answer rating: 100% (QA)

Answer PV of The Windfall ... View the full answer