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Option 1: Lump Sum of $200,000 Option 2: Annuity of $15,000 per year for 25 years Formula P= $15,000 r= 5.5% or 0.055 n= 25
Option 1: Lump Sum of $200,000 Option 2: Annuity of $15,000 per year for 25 years Formula P= $15,000 r= 5.5% or 0.055 n= 25 PV= P((1-(1 r)^(-n))/r) (1 r) =15,000 ((1-(1 0.055)^(-25))/0.055 )(1 0.055) =15,000 ((1-(1.055)^(-25))/0.055 )1.055 = $212,275.48
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliv
9th Edition
130898414, 9780132997379, 978-0130898418, 132997371, 978-0132569309
