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Your eccentric (and rich) uncle is thrilled that you are pursuing your undergraduate in business administration. For the next 40 years (starting 1 year from
Your eccentric (and rich) uncle is thrilled that you are pursuing your undergraduate in business administration. For the next 40 years (starting 1 year from now; last payment 40 years from now), he will pay you $2,000 every odd year (1st, 3rd etc.) and $3,000 every even year (2nd, 4th etc.). The relevant discount rate is 5% per year. What is the present value of all the money you will receive from this source over the next 40 years (pick the closest number)?
A) $24,214 B) $29,582 C) $37,397 D) $42,688
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