Use the appropriate time value of money table

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A financial company that advertises on television will pay you $65,000 now for annual payments of $10,300 that you are expected to receive for a legal settlement over the next 8 years. Assume you estimate the time value of money at 9 percent.

Use the appropriate time value of money table [Exhibit 1-A,  Exhibit 1-B,  Exhibit 1-C, OR Exhibit 1-D].

(a) What is the present value?

(b) Would you accept this offer? (yes or no)

Reference no: EM13908824

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