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What if your Aunt Terry has promised to pay you 100 in year 1 200 in year 2 300 in year 3 400 in year 4 and 500 in year 5. and nbsp Assume that the interest rate is 5 per annum calculate the present v?
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Your Aunt Terry has promised to pay you $100 in year 1, $200 in year 2, $300 in year 3, $400 in year 4 and $500 in year 5. Assume that the interest rate is 5% per annum, calculate the present value of Aunt Terry's promised series of payments over the next 5 years.
a.
The present value of Aunt Terry's promised series of payments is $1,256.64.
b.
The present value of Aunt Terry's promised series of payments is $1,500.
c.
None of the other answers are true.
d.
The present value of Aunt Terry's promised series of payments is $1,319.47.
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