You invest $1,400 today and expect to sell your investment for $3,200 in 10 years.   a-1. Calculate the present value of the future payoff, if the interest rate is 8%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Is this a good deal? b-1. Calculate the present value, if the interest rate is 11%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-2. Is this a good deal?

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A: Option 1: Receives $1000 at 10% today But if we invest the $1000 received today for 5 years

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A: Please refer to the image below

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Q: Bill Padley expects to invest $24,000 for 9 years, after which he wants to receive $28,682.40. What…

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Q: what is correct

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A: PV=FV/(1+i)n Let's assume that - FV= $1000 i= 6%= 0.06 n=5   PV=1000/(1+0.06)5 PV= $747.25

Q: None

A:

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