Assignment: Chapter $04$ Time Value of Money

You got into a car accident and settled out of court for equal payments of $$2,000$ at the end of each year for the next five years.

If the annual interest rate stays constant at $6\%,$ what is the value of these payments in today's dollars? $($Note: Round your answer to the nearest whole dollar.$)$

$$10,531$

$$8,425$

$$8,931$

$$7,161$

You found out that now you are going to receive payments of $$10,000$ for the next $15$ years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at $15\%.$

What is the present value of these payments? $($Note: Round your answer to the nearest whole dollar.$)$

$$90,781$

$$67,245$

$$58,474$

$$53,796$