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Business, 31.03.2020 22:52 marifermolina
Your grandfather has promised to give you $500 a year at the end of each of the next four years if you earn Cs or better in all of your courses each year. Using a discount rate of 7%, which of the following is correct for determining the present value of the gift?
a. PV = $500x7%x4
b. PV = $500x(PV factor, i=4%, n =7)
c. PV = $500x(Annuity PV factor, i=7%, n=4)
d. PV = $500x(Annuity PV factor, i=7%, n=4)
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Answers: 2
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