EB-3A (similar to) Quastion Hap O (Clck the loon to view the payment plan Clck t

Question

EB-3A (similar to) Quastion Hap O (Clck the loon to view the payment plan Clck the icon to view the present value factor table. (aick the icon to view the future value fac or table. Clex the icon bo vew the present walue c anity (Cick theioon to view the future value of annui le tactor table.) acor Requirement 1. Calutc the prentalu cot of ach payma plan. Mare Infc sc ect tho trmaa and crter the amounts to cd0ulate to present w uc. IEmor te factor armount to trce declmal places, xxxx, and round your final answer to the roarcat wroe dollar) r! vyLH Urrruity Ur $1 a dar | Present value, under Plan A ear for four years. The payments rcude interest at 8 percent per your. “ of four yaar This paymant ndudas bth priropal ard intereat at 8 parcan Pint Done Reference Raferenoa e of Period 4% 5% 6% 7% 10% 12% 14% 16% 10620.5 0943 0.90b 0.926 0.909 0393 C.0.962 2 0925 0.9 09 873 857R 79 0.7.T43 3 0.0D9 .DE1 034D 0.816 0.791 0.7510712 0.675 0.511 4 | 0.8531 0.82210732 U.763|0.735|U68310635 0.5| U.552 0822 0.784 0747 .713 0.681 1 0567 0.519 0.476 Preseal Value o Aanuity o $1 10% 12% 0.926 . U8U3 Period 4% 5% 6% 7% 8% 14% 16% 2 1.88 1.B5 1.833 1.808 1.73 1.736 16901.647 1.605 3 2775 | 2723 | 2673 | 2A24 2.577 | 2487 | 2402 | 2322 2246 4 3.630 | 3.546 | 3.465 | 3.387 3.312 | 3.120 | 3.03/ | 2914 2. 7 070 0.7110665 0.623 0.583 0.513 0452 0.400 0.354 a 0r31 0.6 082 0.532 0.54040404 0.3 0.30 9 0.703 0.615 0592 0514 0.500 0.424 0.361 0.306 0.263 10 0678 0.614 0558 05)8 043 036 0322 0.270 0.227 n 4.42 4.379 4212 4.100 393.360 3433 3.274 6 5.212 5.076 .917 1.767 1.623 1.355 4.1113.89 3.635 ? 6.002 | 5./3615.502 | 5.389 , 206 | 4.85-81 4564|4,288 408 6.733 | 6.463 6.210 | 5.971 5.747 | 5.505 | 4,068 | 4.639 4.344 .9 7.435| 7.1cal&An;? | 0.515 .247 | 5.759| 5328|4946 4607 10 8111 7.722 7300 7.104 .710 6.115 5650 5216 1.013 Pint Dore Print Dane Choasa fram ary list ar anter any number in the inpaut fialds and then click Check Anawer

Explanation / Answer

Calculate present value of each plan :

Plan A

Plan B

so plan A is more beneficial

Annuity payment * Present value of annuity of $1 factor = Present value under Plan A 85000 * 3.312 = 281520

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.