# Assuming an interest rate of 6 determine the present

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Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose?(Round your final answers to nearest whole dollar amount.)Required 1Required 2AnnuityPaymentPV AnnuityImmediateCashPV OptionOption 1\$0\$0+\$64,000=\$64,000Option 2\$8,000\$39,339+\$20,000=\$59,339Option 3\$13,000\$63,925+=\$63,925Which option should Alex choose?Option 1Hint #1ReferencesWorksheetLearning Objective: 05-03Compute the present valueof a single amount.Learning Objective: 05-08 Compute the present value ofan ordinary annuity, an annuity due, and a deferredannuity.Difficulty: 2 MediumLearning Objective: 05-07Compute the future value ofboth an ordinary annuity andan annuity due.Answer each of the following independent questions.Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) \$64,000 cash immediately, (2)Hints
\$20,000 cash immediately and a six-period annuity of \$8,000 beginning one year from today, or (3) a six-period annuity of \$13,000beginning one year from today. (FV of \$1,PV of \$1,FVA of \$1,PVA of \$1,FVAD of \$1andPVAD of \$1)(Use appropriate factor(s)from the tables provided.)1.Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose?2.The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make
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