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For problems 6-8, assume you purchased some corperate stock 8 years ago for $4,000. You received dividends of $100 each quarter ; your dividends total

For problems 6-8, assume you purchased some corperate stock 8 years ago for $4,000. You received dividends of $100 each quarter ; your dividends total $3,200 (32 dividend checks x $100=$3,200). You sold the stock today for $5,700.

  • The PV is $5,700 because that is the amount you received today (in the present). (T or F)
  • 3,200 represents which variable (PV, PMT, or FV)?
  • What is the FV amount?

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