(Solved by Humans)-Your rich aunt has promised to give you $2,000 a year at the end of each of the next four years to
Question
Your rich aunt has promised to give you $2,000 a year at the end of each of the next four years to help you pay for college. Using a discount rate of 12%, the present value of the gift can be stated as a. PV = $2,000 (PV factor, i = 4%, n = 12). PV = $2,000 (Annuity PV factor, i = 12%, n = 4). PV = $2,000 (Annuity FV factor, i = 12%, n = 4). d. PV = $2,000 x 12% x 4.
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