2. Barber Company will receive $900,000 in 7 years. If the appropriate interest rate is 10%, the present value of the $900,000 receipt is a. $459,000. b. $461,842. c. $1,359,000. d. $1,753,848. Garretson Corporation will receive $10,000 today (January 1, 2014), and also on each January 1st for the next five years (2015 - 2019). What is the present value of the six $10,000 receipts, assuming a 12% interest rate? a. $41,114. b. $46,048. c. $81,152. d. $90,890. 4. John Jones won a lottery that will pay him $3,000,000 after twenty years. Assuming an appropriate interest rate is 5% compounded quarterly, what is the present value of this amount? a. $3,000,000 b. $7,959,900. c. $1,110,500. d. $1,130,668. Jane wants to buy a car from the dealer and pay back the cost to the dealer by making 3 equal annual payments (payments will be made at the end of each year). If the interest is 2.99% and the annual equal payment is USD 12,000 how much is the selling price of the car? a. $31,466. b. $32,570. c. $33,950. d. $36,000