<span>This illustrates the basic concept that a trade-off is sometimes needed. People can not always get exactly want they want and when this happens they must be willing to sacrifice something to get something back in return. Billy must choose between the guitar or new mp3 player. He will gain one of them but because the trade-off, he will lose the ability to get the other item.</span>
A pay raise, a million dollars, and a partner.
Answer:
$45,111.41
Explanation:
For calculation of value of the payments today first we need to find out the value at 3 years which is shown below:-
Value at 3 years = PMT × (1 - (1 ÷ (1 + r^n))) ÷ r
= $3,000 × (1 - (1 ÷ (1.0265 ^24))) ÷ 0.0265
= $52,776.45
Now, The value of the payment today = Value at 3 year ÷ (1 + r^n)
= $52,776.45 ÷ (1.0265^6)
= $45,111.41
Therefore we have applied the above formula.
