Find the total value of the given income stream and also find its present value (at the beginning of the given interval)using the given interest rate.
A)TV = $130,000, PV = $449,142.92
B)TV = $550,000, PV = $7,886,675.30
C)TV = $1,050,000, PV = $809,958.97
D)TV = $1,055,000, PV = $809,958.97
E)TV = $400,125,000, PV = $997,897.20

Question

Find the total value of the given income stream and also find its present value (at the beginning of the given interval)using the given interest rate. 
A)TV = $130,000, PV = $449,142.92 
B)TV = $550,000, PV = $7,886,675.30 
C)TV = $1,050,000, PV = $809,958.97 
D)TV = $1,055,000, PV = $809,958.97 
E)TV = $400,125,000, PV = $997,897.20

Quizplus · Accepted Answer

Without the details of the income stream, it is impossible to calculate the TV and PV for options A, B, D, and E. Option C is the only one that provides specific numbers for both TV and PV, and these calculations are independent of any specific income stream. Therefore, option C is the best choice.

Find the Total Value of the Given Income Stream and Also