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Your rich aunt has promised to give you 2000 a year at the

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Your rich aunt has promised to give you $2,000 a year at the end of each of the next four years to help you pay for college. Using a discount rate of 12%, the present value of the gift can be stated as

a. PV = $2,000 (PV factor, i= 4%, n= 12).

b. PV = $2,000 (Annuity PV factor, i= 12%, n= 4).

c. PV = $2,000 (Annuity FV factor, i= 12%, n= 4).

d. PV = $2,000 X 12% X 4.

Reference no: EM13483821

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