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Assume that you have the opportunity to receive $6,000 at the end of each of the next six years. Given an interest rate of
Assume that you have the opportunity to receive $6,000 at the end of each of the next six years. Given an interest rate of 9%, how much would you be willing to pay for this investment today? Use the present value of an ordinary annuity interest factor table shown below. Excerpt from present value of an ordinary annuity interest factor table Periods 1 6% 0.94340 7% 8% 9% 10% 0.93458 0.92593 0.91743 0.90909 234565 1.83339 1.80802 1.78326 1.75911 1.73554 2.67301 2.62432 2.57710 2.53129 2.48685 3.46511 3.38721 3.31213 3.23972 3.16987 4.21236 4.10020 3.99271 3.88965 3.79079 4.91732 4.76654 4.62288 4.48592 4.35526 7 5.58238 5.38929 5.20637 5.03295 4.86842 A. $26,916 B. $30,180 C. $26,132 D. $23,338 GLEERS
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