Problem:
XYZ company has a balloon payment coming due from a recent acquisition. They need to have $150,000 set aside 5 years from now. They can either make payments into the fund at the beginning of the year or at the end of the year. The current discount rate is 6%.
What TVM concept (s) is represented in the situation?
What is the value of the money represented by the situation?
How did you arrive a the value?