Mathematics, 02.02.2021 20:40 deb2710
Use the formula to calculate the present value of each payment, assuming an interest rate of 3%. The first several payments have been done for you. Fill in the present value amounts in the table for years 6, 7, 8, and 9.
(Note: Ignore taxes on winnings in this activity.)
PV = FV (1 + r)-t
Future Value Present Value
(0 years) $100,000 $100,000
1 year $100,000 $97,087
2 years $100,000 $94,260
3 years $100,000 $91,514
4 years $100,000 $88,849
5 years $100,000 $86,261
6 years $100,000
7 years $100,000
8 years $100,000
9 years $100,000
Answers: 3
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Use the formula to calculate the present value of each payment, assuming an interest rate of 3%. The...
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