Question
Jennifer Davis just learned that she received an inheritance from her grandmother. The inheritance provides for Jennifer to receive $4500 per year at the end
Jennifer Davis just learned that she received an inheritance from her grandmother. The inheritance provides for Jennifer to receive $4500 per year at the end of the year for each of the next 6 years. Assuming a discount rate of 9%, what is the value of this inheritance to Jennifer today?
| Type of Cash Flow | Periods | Interest Rate | Factor |
|---|---|---|---|
| PV of $1 | 6 | 9% | 0.5963 |
| FV of $1 | 6 | 9% | 1.6771 |
| PV ordinary annuity | 6 | 9% | 4.4859 |
| FV ordinary annuity | 6 | 9% | 7.5233 |
| PV annuity due | 6 | 9% | 4.8896 |
which of the below is correct
$20187
$33855
$22003
$17503
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Profit First For Dentists Proven Cash Flow Strategies For Financial Freedom
Authors: Barbara Stackhouse, Drew Hinrichs, Mike Michalowicz
1st Edition
1735907804, 978-1735907802
