Find the real value of the guarantee

Reference no: EM131010513

Buying a "vacation timeshare" means buying the right to use a vacation property for a fixed period each year. Suppose that you pay $900 for a vacation timeshare and receive a "money-back guarantee" that at any time the company will buy back your timeshare, or if not, give you a $1800 bond. The deception, however, is that the bond is not redeemable for 45 years. Find the real value of the "guarantee"Ac€??that is, find the present value of $1800 in 45 years (assume a 4% interest rate compounded annually). (Round your answer to the nearest cent.)

Reference no: EM131010513

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Find the real value of the guarantee : The deception, however, is that the bond is not redeemable for 45 years. Find the real value of the "guarantee" that is, find the present value of $1800 in 45 years.

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