The PHC is offering a prize of $6000 per week for 6 years. If the interest is 5.

Question

The PHC is offering a prize of $6000 per week for 6 years. If the interest is 5.2%, what is the present equivalent value of the prize? What is the future equivalent value at the end of 6 years? Assume 52 weeks in a year.

The PHC s offering a prize of $6 000 per week for 6 years If the interest rate is 52%, compounded weekly, what is the present equivalent value o the prize? What is the future equivalent value at the end of 6 years? Assume 52 weeks in a year The present equivalent value of the prize is $ 2 (Round to the nearest dollar ) The future equivalent value of the prize at the end of 6 years is $23700 (Round to the nearest dollar.)

Explanation / Answer

present equivalent value of the prize

=6000*((1-(1+(5.2%/52))^(-52*6))/(5.2%/52))

=1607426

the future equivalent value at the end of 6 years

=6000*(((1+(5.2%/52))^(52*6)-1)/(5.2%/52))

=2195650

the above is answer..

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