Calculate the present value of the following: a-1. Annual payment of $1,075 for 10 years at...

Calculate the present value of the following:

a-1. Annual payment of $1,075 for 10 years at 5% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present Value:

a-2. Annual payment of $875 for 15 years at 5% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present Value:

a-3. Which option would you prefer?
1. $1,075 a year for 10 years
2. $875 a year for 15 years

b-1. Annual payment of $1,075 for 10 years at 20% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present Value:

b-2. Annual payment of $875 for 15 years at 20% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present Value:

b-3. Which option would you prefer?
1.$1,075 a year for 10 years
2.$875 a year for 15 years

Expert Solution

jeff jeffy answered 2 years ago

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