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You have just received a windfall from an investment you made in a friend's business....

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Accounting

imageYou have just received a windfall from an investment you made in a friend's business. She will be paying you

$16,545

at the end of this year,

$33,090

at the end of next year, and

$49,635

at the end of the year after that (three years from today). The interest rate is

13.8%

per year.

a. What is the present value of your windfall?

b. What is the future value of your windfall in three years (on the date of the last payment)?

You have just received a windfall from an investment you made in a friend's business. She will be paying you $16,545 at the end of this year, $33,090 at the end of next year, and $49,635 at the end of the year after that (three years from today). The interest rate is 13.8% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest dollar.)

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