Julia Baker died, leaving to her husband Adams an insurance policy contract that provides that the beneficiary (Adams) can choose any one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables (a) Your answer is correct. (a) $56,770 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, eg. 458,581.)
Julia Baker died, leaving to her husband Adams an insurance policy contract that provides that the beneficiary (Adams) can choose any one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables (a) Your answer is correct. (a) $56,770 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, eg. 458,581.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Qa.5.
Transcribed Image Text:Julia Baker died, leaving to her husband Adams an insurance policy contract that provides that the beneficiary (Adams) can choose any
one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if:
Click here to view factor tables
(a)
(a) $56,770 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)
(b)
Your answer is correct.
Present value $
(c)
eTextbook and Media
Your answer is correct.
Show Transcribed Text
(b) $4,200 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, e.g. 1.25124 and
final answer to O decimal places, e.g. 458,581.)
Present value $
56770
Present value $
65474
Attempts: 1 of 2 used
G
(c) $19,800 immediate cash and $1,980 every 3 months for 10 years, payable at the beginning of each 3-month period. (Round
factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.)
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