Question
You have just been notified that you will receive $8,250 a year for the next 15 years from an inherited trust. If the interest rate
You have just been notified that you will receive $8,250 a year for the next 15 years from an inherited trust. If the interest rate is 7 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)
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Sherwin Williams will earn $20,000 a year for the next 17 years for a picture he has painted. At an interest rate of 14 percent, how much are the earnings worth today? (Enter your answer as a positive number rounded to 2 decimal places.)
b. Should he be willing to sell his future earnings now for $170,000?
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