Lecture Notes on Time Value of Money
3. What is the future value in 10 years of $1,500 payments received at the end of each year for the next 10 years? Assume an interest rate of 8%. a. $25,260. b. $23,470. c. $21,730. d. $18,395. e. $15,000. 4. You are given the option of receiving $1,000 now or an annuity of $85 per month for 12 months. Which of the following is correct? a. ................
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