Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The answer & explanation for this question is given in the attachment below.
°first-come/first-served (i.e., vaccines)
°sharing equally (i.e., food distribution)
°weight (i.e. based on percentage of population)
°merit (i.e., contests)
°random (i.e., contests)
Answer:
$788.35
Explanation:
For computing the fair present value we need to apply the present value formula which is to be shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 14% ÷ 4 = 3.5%
NPER = 4 years × 4 = 16 years
PMT = $1,000 × 7% ÷ 4 = $17.5
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the formula, the fair present value is $788.35