A) What is the present value of 500,000 to be paid in 10 years with an interest rate of 8 percent?
B) What is the present value of 10 equal payments of 15,000 with an interest rate of 10 percent?
C) You plan to retire in 10 years. Would it be better for you to save 27,500 a year for the last five years before retirement or 16,250 for each of the 10 years? You are able to earn 9 percent interest on your investments.