Question

If you get $0 for two years, and then $2 once a year for four years,...

If you get $0 for two years, and then $2 once a year for four years, how much is that worth? Assume an annual interest rate of 2%

Help,I can't seem to figure this out. I get 8.41 for the answer (see my work below). but it is wrong.

yr0
annual payment $2 1 0
rate 0.02 2 0
# of yeaers 4 years 3 2 0.04
periods 1 4 4.04 0.0808
5 6.1208 0.122416
FV ($8.41) 6 8.242416 0.164848 8.407264
PV ($7.62) 7 0
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS YOU HAVE STATED 2 THINGS : PV AND FV .

I HAVE CALCULATED BOTH "PV" AND "FV"

ALSO GIVEN FORMULAS.

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