Question
Question 1: What is the discounted value of payments of $58.00 made at the end of each year for 9 years if interest is 11%
Question 1: What is the discounted value of payments of $58.00 made at the end of each year for 9 years if interest is 11% compounded annually? Part 1 The discounted value is $
Question 2: You have the choice of receiving $110,000 now, or $58,000 now and another $77,000 seven years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 5.4% compounded annually.
Which choice is better?
A.The choice of $58,000 now and $77,000 in seven years is better.
B.They are equal in value.
C.The choice of $110,000 now is better.
Part 2
The better choice is greater than the alternative choice by . in terms of today's dollar.
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