What is the Present Value of an Old Faithful Trust Fund's income if you receive $1000...
What is the Present Value of an Old Faithful Trust Fund's income if you receive $1000 in year 1, $3000 in year 2 and $8000 in year 3? assume 8% interest.
Calculating with BA II Finance Calculator
Homework Answers
Put the following values in the financial calculator:
CF0 = 0; C01 = 1,000; F01 = 1; C02 = 3,000; F02 = 1; C03 = 8,000; F03 = 1; Press NPV, then put I=8%, press down key, then press CPT, which gives us 9,848.60
So, PV of Old Faithful Trust Fund's Income is $9,848.60
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