Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please explain how to get the answer i am having difficulty undertsanding. 6. Your grandmother has promised to give you $2,000 at the end of

please explain how to get the answer i am having difficulty undertsanding. image text in transcribed
6. Your grandmother has promised to give you $2,000 at the end of each of the next four years if you earn Cs or better in all of your courses each year. Using a discount rate of 8% and the table below, what is the present value of the gift? Present Value of an Annuity of $1 5% 6% 7% 8% 9% 10% 1 0.952 0.943 0.935 0.926 0.917 0.909 2 1.859 1.833 1.808 1.783 1.759 1.736 3 3 2.723 2.673 2.624 2.577 2.531 2.487 4 3.546 3,465 3.387 3.312 3.240 3.170 5 4.329 4.212 4.100 3.993) 3.890 3.791 D) B) 55.900 C) $6,109 A) $5.612 $6.624

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions