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Lorenzo received two purchase offers for his Italian restaurant. Mrs. A is offering a $22200 down payment plus $53900 payable in 1 years. Mr. B's
Lorenzo received two purchase offers for his Italian restaurant. Mrs. A is offering a $22200 down payment plus $53900 payable in 1 years. Mr. B's offer is $15200 down plus two $32900 payments due 2 and 3 years from now. Money can earn 4% compounded quarterly. Find
- The value of Mrs. A's payment in 1 years in terms of dollars today,
- The total value of Mrs. A's offer today,
- The value of Mr. B's payment in 2 years in terms of dollars today,
- The value of Mr. B's payment in 3 years in terms of dollars today,
- The total value of Mr. B's offer today.
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