Assignment: Chapter $04$ Time Value of Money

Your uncle has said that if you agree to finish college he will give you equal payments of $$2,500$ at the end of each year for the next eight years.

If the annual interest rate stays constant at $9\%,$ what is the value of these payments in today's dollars? $($Note: Round your answer to the nearest whole dollar.$)$

$$13,837$

$$15,082$

$$17,296$

$$11,761$

You found out that now you are going to receive payments of $$10,000$ for the next $14$ years. You will recelve these payments at the beginning of each year. The annual interest rate will remain constant at $16\%.$

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

$$63,423$

$$54,675$

$$50,738$

$$85,621$