An investment will pay $20,200 at the end of the first year, $30,200 at the end...

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An investment will pay $20,200 at the end of the first year, $30,200 at the end of the second year, and $50,200 at the end of You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (U

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Answer 1

Answer #1

Note: As per HOMEWORKLIB POLICY, only one question is allowed to answer at a time, so here first question is being answered :

ANSWER:

present value of investment = present value of $20200 + present value of 30200 + present value of 50200

= ($20200 x 0.92593) + (30200 x 0.85734) + (50200 x 0.79383)

= $18,703.786 + $25,891.668 + $39,850.266

= $84,446

where,

PVF(8%, 1) = 0.92593

PVF(8%, 2) = 0.85734

PVF(8%, 3) = 0.79383

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Answer 2

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