please answer the question below

Business & Finance
Tutor: None Selected Time limit: 1 Day

You expect to receive $300,000 gift in 4 years. If you assume a 20% annual rate of return, 

approximately how much is this gift worth today?

A) $144,600 B) $622,200 C) $1,610,400 D) $201,950 E) $300,000 

Jul 7th, 2015

Thank you for the opportunity to help you with your question!

Present value = 300000/(1+0.2)^4 = 144675.9259

Hence, A is correct alternative.


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 7th, 2015

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