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everything please!!!! A local bank advertises the following deal Pay us $100 at the end of each year for 11 years and then we will
everything please!!!!
A local bank advertises the following deal Pay us $100 at the end of each year for 11 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever a. Calculate the present value of your payments to the bank of the Interest rate is 9.00% (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Present value b. What is the present value of a $100 perpetuity deferred for 11 years of the interest rate is 9.00%. (Do not round Intermediate calculations. Round your answer to 2 decimal places) Present value c. Is this a good deal? No A famous quarterback just get a new compensation contract, which provides $3.4 million a year for 4 years. A less famous receiver signed a new compensation contract, which provides $3 million now and $2.9 million a year for 4 years. The interest rate is 8% a. What is the PV of the quarterback's contract? (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value million b. What is the PV of the receiver's contract? (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Presentat million c. Who is better paid? Quarterback Receiver Step by Step Solution
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