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Helen Martin just learned that she received an inheritance from her grandmother. The inheritance provides for Helen to receive $5400 per year at the end

Helen Martin just learned that she received an inheritance from her grandmother. The inheritance provides for Helen to receive $5400 per year at the end of the year for each of the next 6 years. Assuming a discount rate of 11%, what is the value of this inheritance to Helen today?

Type of Cash Flow Periods Interest Rate Factor
PV of $1 6 11% 0.5346
FV of $1 6 11% 1.8704
PV ordinary annuity 6 11% 4.2305
FV ordinary annuity 6 11% 7.9129
PV annuity due 6 11% 4.6959

a. $25358

b. $42730

c. $22845

d. $19958

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