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Your grandfother has offered you u choice of one of the twee followng witernatives. 58.000 nows. $2.500 a year fies ten yers of $42,000 at
Your grandfother has offered you u choice of one of the twee followng witernatives. 58.000 nows. $2.500 a year fies ten yers of $42,000 at the end of ten years, (Use a Finaneial calculntor to arrive nt the mnswers. Pound the finni anwwers to the nebreut whate doller.) a-1. Assuming you could earn 8 percent annually, compute the present value for the follawnog umounk. a-2. Which altemative should you choose? $42.000 received at the end of ten years $2.500 recelved each year for ten years $8,000 received now b-1. If you could eam 12 percent annually, compute the present value for the fosowing anounts. a-2. Which alternative should you choose? $42.000 received at the end of ten years $2.500 recelved each year for ten years $8,000 received now b-1. If you could eam 12 percent annually, compute the present value for the following arnounts b-2. Which alternative should you choose? $2.500 recelved each year for ten years $42.000 recelved at the end of ten years $8,000 recelved now
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