Question

# Investment X offers to pay you \$5,400 per year for nine years, whereas Investment Y offers...

 Investment X offers to pay you \$5,400 per year for nine years, whereas Investment Y offers to pay you \$7,700 per year for five years.

 Calculate the present value for Investments X and Y if the discount rate is 6 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
 Present value Investment X \$ Investment Y \$
 Calculate the present value for Investments X and Y if the discount rate is 16 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
 Present value Investment X \$ Investment Y \$

 Req a: Investment X: Amount annual received 5400 Multiply: Annuity PVF at 6% for 9 yrs 6.80169 Present value of investment X 36729.13 Investment Y: Amount annual received 7700 Multiply: Annuity PVF at 6% for 5 yrs 4.21236 Present value of investment Y 32435.17 Req b: Investment X: Amount annual received 5400 Multiply: Annuity PVF at 16% for 9 yrs 4.60654 Present value of investment X 24875.32 Investment Y: Amount annual received 7700 Multiply: Annuity PVF at 16% for 5 yrs 3.27429 Present value of investment Y 25212.03

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