Math  /  Algebra

QuestionInvestment XX offers to pay you $5,400\$ 5,400 per year for nine years, whereas Investment YY offers to pay you $7,700\$ 7,700 per year for five years. a. Calculate the present value for Investments XX and YY if the discount rate is 6 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the present value for Investments XX and YY if the discount rate is 16 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 3216.) \begin{tabular}{|c|c|c|} \hline a. Investment XX & \ & 36,728.98 \\ \hline a. Investment Y & \$ & 32,434.23 \\ \hline b. Investment X & \$ & 25,179.82 \\ \hline b. Investment Y$ & \$ & 25,211.49 \\ \hline \end{tabular}

Studdy Solution
Calculate the final value:
PVY7700×3.2743825,211.49 PV_Y \approx 7700 \times 3.27438 \approx 25,211.49
\begin{tabular}{|c|c|c|} \hline a. Investment XX & \ & 36,728.98 \\ \hline a. Investment Y & \$ & 32,434.23 \\ \hline b. Investment X & \$ & 25,179.82 \\ \hline b. Investment Y$ & \$ & 25,211.49 \\ \hline \end{tabular}

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