A wealthy business man promises to donate $10,622.00 to charity every six months for 20 years (at the end of every period). The current interest rate is 8.560% compounded quarterly, but it is projected to change to 11.020% (still compounded quarterly) after 7 years. What is the present value of the donation based on this projection? O a. X = $198,547.40. O b. X= $202,518.34.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. math of interest. please solve correctly

A wealthy business man promises to donate $10,622.00 to charity every six months for 20 years (at the end of
every period). The current interest rate is 8.560% compounded quarterly, but it is projected to change to 11.020%
(still compounded quarterly) after 7 years. What is the present value of the donation based on this projection?
X = $198,547.40.
O b. X= $202,518.34.
O c. X = $208,474.77.
d. X = $206,489.29.
a.
e.
None of the other answers is correct.
Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)
Transcribed Image Text:A wealthy business man promises to donate $10,622.00 to charity every six months for 20 years (at the end of every period). The current interest rate is 8.560% compounded quarterly, but it is projected to change to 11.020% (still compounded quarterly) after 7 years. What is the present value of the donation based on this projection? X = $198,547.40. O b. X= $202,518.34. O c. X = $208,474.77. d. X = $206,489.29. a. e. None of the other answers is correct. Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 (Quite sure: >80%)
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