Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show formulas for execel. You have just received a windfall from an investment you made in a friend's business. He will be paying you

image text in transcribed

Please show formulas for execel.

You have just received a windfall from an investment you made in a friend's business. He will be paying you $10,000 at the end of this year, $20,000 at the end of the following year, and $30,000 at the end of the year after that (three years from today). The interest rate is 3.5% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? Interest rate [ 3.50%] Year Cash flow 2 3 S30,000 S10,000S20,000 a. What is the present vahue of your windfall? Present value b. What is the future value of your windfall in three years (on the date of the last payment)? Future value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

American Public School Finance

Authors: William A. Owings, Leslie S. Kaplan

3rd Edition

113849996X, 978-1138499966

More Books

Students also viewed these Finance questions