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Your favorite uncle has promised to give you $2,500 per year and the end of each of the next four years to help you pay
Your favorite uncle has promised to give you $2,500 per year and the end of each of the next four years to help you pay for a new car. Using an annual interest rate of 10%, interest is compounded (calculated) 1 per year, the present value of the gift can be stated O A. PV = $2,500 (PV factor, i=10%, n=10) OB. PV = $2,500 x 10% x 4 OC. PV = $2,500 (Annuity factor, i=10%, n=4) OD. PV = $2,500 (Annuity factor, i=4%, n=10)
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