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Calculate the present value of the scenarios

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Calculate the present value of the following scenarios and note which choice gives you the lowest present value.

a. You rented a truck and you could pay $10,000 at the end of each year for 5 years or pay $50,000 today. The annual interest rate assumed i5 4%

b. You bought a new scooter and you can either pay $300 a month to a company for 20 months or pay $4,000 today. The company is charging an annual interest rate of 12%.

c. You bought a new computer and can pay $200 a year for 2 years and then 5300 on the third year or you can pay $500 in three years. The annual interest rate assumed is 5%.

Reference no: EM133197505

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