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A contract calls for a lump-sum payment of $30,000. Find the present value of the contract, assuming that (1) the payment is due in five
A contract calls for a lump-sum payment of $30,000. Find the present value of the contract, assuming that (1) the payment is due in five years and the current interest rate is 9 percent; (2) the payment is due in ten years and the current interest rate is 9 percent; (3) the payment is due in five years and the current interest rate is 5 percent; and (4) the payment is due in ten years and the current interest rate is 5 percent.
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