its value today? Interest at a compound rate of 7 percent. 20 a. $3,870 b. $1,967 C. $3,026 d. $3,583 1.000*(1 + 7/3 20 1,000+.3.869684462486 - 3,869 7. If you had a $40,000 payable at the end of 7 years, what amount should your creditor accept in payment immediately if she could earn 12% on her money? 40,000 *(1+(1+127.)^7) = 18,094 8. Susan is expected to receive an award of $12,000 a year for the next 15 years as a result of her new book. If a 9% rate is applied, should she be willing to sell out her future rights 1688 x 12000 496,723.260 (1-0-274538]/009- 6-72546276 - 9. Jack and Jill invest in a stock that will pay dividends of $2.00 at the end of year 1: $2.20 at the end of the second year; and $2.40 at the end of the third year. They expect to sell the stock at 33 at the end of year 3. What is the present value of all future benefits if a discount rate of 11% applied? (round to 2 decimal places)