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Calculate the present value of an ordinary annuity

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Reference no: EM132965984

Problem 1: The family attorney notified you that you are the sole heir to your lost uncle's legacy. You have two options to receive the inheritance: receive $ 500,000 at the end of each of the next 10 years or receive a one-time payment of $ 2,500,000. Determine which is the best option.

Problem 2: Calculate the Present Value of an ordinary Annuity (PVA) that includes 12 payments of $ 200 and an interest rate of 9%.

Reference no: EM132965984

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