Question
On Joe Martins graduation from college, Joes uncle promised him a gift of $12,400 in cash or $860 every quarter for the next 5 years
On Joe Martins graduation from college, Joes uncle promised him a gift of $12,400 in cash or $860 every quarter for the next 5 years after graduation. Assume money could be invested at 8% compounded quarterly. (Use Table 13.2.)
a. Calculate the present value of options. (Do not round intermediate calculations. Round your answer to the nearest cent.)
| Present value | |
| Option 1 | $ |
| Option 2 | $ |
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The AMA Handbook Of Financial Risk Management
Authors: John J. Hampton
1st Edition
0814417442, 978-0814417447
