You have just received a windfall from an investment you made in a friend's business. She will be paying you $30,864 at the end of this year, $61,728 at the end of next year, and $92,592 at the end of the year after that (three years from today). The interest rate is 10.7% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.)
You have just received a windfall from an investment you made in a friend's business. She will be paying you $30,864 at the end of this year, $61,728 at the end of next year, and $92,592 at the end of the year after that (three years from today). The interest rate is 10.7% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.)
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You have just received a windfall from an investment you made in a friend's
business. She will be paying you $30,864 at the end of this year, $61,728 at the end
of next year, and $92,592 at the end of the year after that (three years from today).
The interest rate is 10.7% per year.
a. What is the present value of your windfall?
b. What is the future value of your windfall in three years (on the date of the
last payment)?
a. What is the present value of your windfall?
The present value of your windfall is $ (Round to the nearest dollar.)
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