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Find the pv of tenants a and b

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Reference no: EM131493203

You have a rental property that you want to rent for 10 years. Prospective tenant A promises to pay you a rent of 12000 per year with the payments made at the end of each year. Tenant B promises to pay 12000 per year with payments made at the beginning of each year. The discount rate is 12%.

A. Find the PV of tenants A and B. What is the better deal for you?

B. Find FV of A and B at the end of ten years. which payments A or B will have higher future value after ten years?

Reference no: EM131493203

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