Laura Hall just learned that she received an inheritance from her grandmother. The inheritance provides for Laura
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Question:
Laura Hall just learned that she received an inheritance from her grandmother. The inheritance provides for Laura to receive $5600 per year at the end of the year for each of the next 4 years. Assuming a discount rate of 13%, what is the value of this inheritance to Laura today?
Type of Cash Flow | Periods | Interest Rate | Factor |
---|---|---|---|
PV of $1 | 4 | 13% | 0.6133 |
FV of $1 | 4 | 13% | 1.6305 |
PV ordinary annuity | 4 | 13% | 2.9745 |
FV ordinary annuity | 4 | 13% | 4.8498 |
PV annuity due | 4 | 13% | 3.3612 |
$18823
$16657
$13223
$27159
Posted Date: