FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Drew receives an inheritance that pays him $47,000 every three months for the next two years. Which of the following is closest to the present

image text in transcribed

Drew receives an inheritance that pays him $47,000 every three months for the next two years. Which of the following is closest to the present value (PV) of this inheritance if the interest rate is 8.2% (EAR)? A. $376,000 B. $413,338 C. $275,559 D. $344,449

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantum Investing Unlocking The Secrets Of The New Financial System

Quantum Investing Unlocking The Secrets Of The New Financial System

Authors: Hugh Webb

1st Edition

979-8388948823

More Books

Students also viewed these Finance questions

Question

What factors determine the elasticity of resource demand? What effect will each of the following have on the elasticity or the location of the demand for resource C, which is being used to produce...

Answered: 1 week ago

Question

★★★★★
Alpha Company needs 20,000 units of a certain part to use in its production cycle. The following information is available: Cost to Alpha to make the part: Direct materials . . . . . . . . . . . . . ....

Answered: 1 week ago

Question

★★★★★
A beta coefficient for a stock of 0.8 implies O a. an 8% decrease in the market will cause the return on this stock to be 8%. O b. a return of 10% on the market will cause the return on this stock to...

Answered: 1 week ago

Question

★★★★★
You want to have $2,500,000 saved by the time you retire which is in 45 years. You can invest your money in a portfolio that is estimated to earn 12% per year. You have no money saved today but would...

Answered: 1 week ago

Question

★★★★★
THE FOLLOWING IS THE SUMMARY OF TRANSACTIONS OF ABC CO. BEG INVENTORY SEPT 3 SEPT 6 SEPT 11 SEPT 17 SEPT 21 SEPT 26 SEPT 30 2,200 UNITS @80/ UNIT PURCHASE 7,000 UNITS FOR 595,000 SOLD 8,200 UNITS FOR...

Answered: 1 week ago

Question

★★★★★
Complete load_pts_file function that reads multiple pairs of numbers from a file and finds the distance between every two numbers on a number line: Few steps as the guidance 1) Open/Read the .dat...

Answered: 1 week ago

Question

★★★★★
The design wind pressure, p, on the windward side of a building is determined from ASCE 7 wind load procedures. The pressures calculated at the second floor and the roof are assumed to be uniform...

Answered: 1 week ago

Question

★★★★★
Abby's Art Mart (AAM) is a specialty retailer in Iowa City, Iowa. Abby Martin has a passion for art and art education. AAM sells art supplies of all kinds and provides art lessons to aspiring artists...

Answered: 1 week ago

Question

★★★★★
QUESTION 2: Ellesmere Limited is considering bidding on a contract to supply 10 subway cars each year to the City of Toronto for the next 15 years. Use the following information to determine the bid...

Answered: 1 week ago

Question

★★★★★
The raw data are submitted to the data-processing division by the sales representative each Friday.

Answered: 1 week ago

Question

★★★★★
I have completed the form and returned it to my insurance company, as per your instructions.

Answered: 1 week ago

Question

★★★★★
High attrition was a result of the new front-line sales managers (abrasive) behavior.

Answered: 1 week ago

Previous Question Next Question