Author Question: Dina Jones just learned that she received an inheritance from her grandmother. The inheritance ... (Read 110 times)

blkth103 · **on:** Feb 5, 2023

Question 1

Given a present value factor of 3.7907, assuming a 10% discount rate, the present value of an annuity of $20,000 payment each year for five years is
◦ $26,380.
◦ $75,814.
◦ $379,070.
◦ $5,276.

Question 2

Dina Jones just learned that she received an inheritance from her grandmother. The inheritance provides for Dina to receive $5,000 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 10%, what is the value of this inheritance to Dina today?

Type of Cash Flow

Periods

Interest Rate

Factor

PV of $1	5	10%	0.6209
FV of $1	5	10%	1.6105
PV ordinary annuity	5	10%	3.7908
FV ordinary annuity	5	10%	6.1051
PV annuity due	5	10%	4.1699

◦ $30,526
◦ $20,849
◦ $18,954
◦ $15,523

kalimarie · **Reply #1 on:** Feb 5, 2023

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

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