Your hard work in college paid off, quite literally, and you received a graduate assistantship for your MBA program. The assistantship pays a stipend of $12,000 at the end of each of the next 2 years. Using an average discount rate of 2%, the future value of your assistantship can be calculated by
A) PV = $12,000 × 2% × 2.
B) PV = $12,000 (PV factor, i = 2%, n = 2) .
C) PV = $12,000 (Annuity PV factor, i = 2%, n = 2) .
D) PV = $12,000 (Annuity FV factor, i = 2%, n = 2) .
Correct Answer:
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