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Business, 06.07.2020 20:01 lizzidubois
You just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for computing the present value as of today at 6 percent?
A. PV = $800 + $500/1.06 + $500/1.06 + $500/1.063
B. PV = $800/1.06 + $500/1.06 + $500/1.06 + $500/1.064
C. PV = $800+ $500/1.06 + $500/1.06+ $500/1.064
D. PV = $800(1.06)+ $500 +$500/1.06 + $500/1.062
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You just won a prize that will pay you $800 today and $500 a year for the next three years. Which is...
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