Assume you won a prize and will recelve $32,800 for the next 16 years. a. How much is your prize worth now If the interest rate is 17 percent? (Enter your answer as a whole number rounded to 2 decimal places.) b. Should you accept $208.000 now in exchange for the future payments? O Yes O No

Assume you won a prize and will recelve $32,800 for the next 16 years. a. How much is your prize worth now If the interest rate is 17 percent? (Enter your answer as a whole number rounded to 2 decimal places.) b. Should you accept $208.000 now in exchange for the future payments? O Yes O No

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assume you won a prize and will recelve $32,800 for the next 16 years.
a. How much is your prize worth now If the interest rate is 17 percent? (Enter your answer as a whole number rounded to 2
decimal places.)
b. Should you accept $208.000 now in exchange for the future payments?
O Yes
O No

Calculate the present value of a 6-year annuity of $1,500 per year with payments made at the beginning of each year if the interest
rate is 12%. (Enter your answer as a positive number rounded to 2 decimal places.)
Present value

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