Your hard work in college paid off, quite literally, and you received a graduate assistantship for your MBA program. The assistantship pays a stipend of

$12,000

at the end of each of the next 2 years. Using an average discount rate of

4%,

the future value of your assistantship can be calculated by

Question content area bottom

Part 1

A.FV =

$12,000

(Annuity PV factor, i =

4%,

n = 2).

B.FV =

$12,000

(Annuity FV factor, i =

4%,

n = 2).

C.FV =

$12,000

(PV factor, i =

4%,

n = 2).

D.FV =

$12,000

x

4%

x 2.