2 points You are scheduled to recelve annual payments of $6,100 for each of the next...

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Answer 1

Answer #1

Hello SIr/ Mam

YOUR REQUIRED ANSWER IS OPTION A : $2,483

Given that:

Annual Payments = $5,100

n = 7 years

FV = $0

Rate = 10%

End of year

Using excel function, "=PV(10%,7,-5100,0,0)", we got PV = $24,828.94

Beginning of the year

Using excel function, "=PV(10%,7,-5100,0,1)", we got PV = $27,311.83

Hence, the difference is $2,482.89

I hope this solves your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.

Answer 2

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