Investment X offers to pay you $5,400 per year for seven years, whereas Investme

Question

Investment X offers to pay you $5,400 per year for seven years, whereas Investment Y offers to pay you $7,500 per year for four years. Calculate the present value for Investment X and Y if the discount rate is 6 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Calculate the present value for Investment X and Y if the discount rate is 16 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Explanation / Answer

@6%

Investment X $30,144.86

Investment Y $25,988.29

@16%

Investment X $21,808.25

Investment Y $20,986.35

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