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If Matt will pay me $100 at the end of each year for five years and asks me to give him the present value now,
If Matt will pay me $100 at the end of each year for five years and asks me to give him the present value now, assuming an interest rate of 12%, how much should I give Matt today? Select one: O a. $100 x 0.56743 (Present Value of $1 @ 12% for 5 periods) = $56.74 O b. $500 x 3.60478 (Present Value of Annuity of $1 @ 12% for 5 periods) = $1,802.39 C. $100 x 3.60478 (Present Value of Annuity of $1 @ 12% for 5 periods) = $360.48 O d. $500 x 0.56743 (Present Value of $1 @ 12% for 5 periods) = $283.72
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