Dina Jones just learned that she received an inheritance from her grandmother.The inheritance provides for Dina to receive $5,000 per year at the end of the year for each of the next 5 years.Using the following factors,what is the value of this inheritance to Dina today?
$$\begin{array}{lllr}
\text{Type of cash flow} & \text{n Periods} & \text{i Interest rate} & \text{ Factor } \
\hline \text{PV of \$ 1} & 5 & 10 \% & .62092 \
\text{FV of \$ 1} & 5 & 10 \% & 1.61051 \
\text{PV ordinary annuity} & 5 & 10 \% & 3.79079 \
\text{FV ordinary annuity} & 5 & 10 \% & 6.10510 \
\text{PV annuity due} & 5 & 10 \% & 4.16986
\end{array}$$

Question

Dina Jones just learned that she received an inheritance from her grandmother.The inheritance provides for Dina to receive $5,000 per year at the end of the year for each of the next 5 years.Using the following factors,what is the value of this inheritance to Dina today?
 $$\begin{array}{lllr} 
\text{Type of cash flow} & \text{n Periods} & \text{i Interest rate} & \text{ Factor } \
\hline \text{PV of  \$ 1}  & 5 & 10 \%  & .62092 \
\text{FV of  \$ 1}  & 5 & 10 \%  & 1.61051 \
\text{PV ordinary annuity} & 5 & 10 \%  & 3.79079 \
\text{FV ordinary annuity} & 5 &  10 \%  & 6.10510 \
\text{PV annuity due} & 5 &  10 \%  & 4.16986
\end{array}$$

Quizplus · Accepted Answer

The Answer of Dina Jones just learned that she received an inheritance from her grandmother.The inheritance provides for Dina to receive $5,000 per year at the end of the year for each of the next 5 years.Using the following factors,what is the value of this inheritance to Dina today?
 $$\begin{array}{lllr} 
\text{Type of cash flow} & \text{n Periods} & \text{i Interest rate} & \text{ Factor } \
\hline \text{PV of  \$ 1}  & 5 & 10 \%  & .62092 \
\text{FV of  \$ 1}  & 5 & 10 \%  & 1.61051 \
\text{PV ordinary annuity} & 5 & 10 \%  & 3.79079 \
\text{FV ordinary annuity} & 5 &  10 \%  & 6.10510 \
\text{PV annuity due} & 5 &  10 \%  & 4.16986
\end{array}$$

Dina Jones Just Learned That She Received an Inheritance from Her