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You will need at least $5,100 in four years and your friend says she can either loan you $5100 all at once four years from
You will need at least $5,100 in four years and your friend says she can either loan you $5100 all at once four years from now or she can deposit $1275 in your savings account at the end of each year for the next four years. Your savings account earns 9% Interest, compounded annually. Which option would be worth more to you four years from now, and how much more? (Future Value of $1. Present Value of $1. Future Value Annuity Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice The 55,100 in four years will be worth $731 more than the annual deposits 0 C ) The $5,100 in four years will be worth $539 more than the annual deposits 0 The annual deposits will be worth $539 more than the $5,100 in four years. 0 0 O The annual deposits will be worth $731 more than the $5,100 in four years. If cash flows are not equal each year, the payback period: Multiple Choice is calculated by dividing the initial investment by the average cash flows. is calculated by subtracting each year's cash flows from the initial investment until zero is reached. cannot be calculated. is calculated by dividing the total years in the project by two
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