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please make sure answer page isnt cut in half. thank you!!!! An acquaintance of yours owes you $1.200, but only has $900 to pay you
please make sure answer page isnt cut in half. thank you!!!! An acquaintance of yours owes you $1.200, but only has $900 to pay you now. He says he can either give you the $900 now in full settlement of the debt, or he can give you $1,200 one year from now. If you would let him keep the money for two years, though, he would give you $1,300 at that point. You have a savings account that earns 13% Interest (Future Value of $1. Present Value of $1. Future Value Annulty of $1. Present Value Annulty of $1.) (Use appropriate factor from the PV tables.) a. What is the present value of the payment now? Pelle b. What is the present value of the payment a year from now? (Round your answer to 2 decimal places.) Present Value c. What is the present value of the payment two years from now? (Round your answer to 2 decimal places.) Present Value d. Which option would be best for you financialy? The $1,200 payment a year from now The $900 payment to pay now The $1,300 payment two years from now
please make sure answer page isnt cut in half. thank you!!!!
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