3. Present Value A. If the discount rate is 13 percent, what is the present value of $1,630.47 to be received in four years? B. Les Ismore has just inherited $83,838.44 and wishes to purchase an...

Extracted text: 3. Present Value A. If the discount rate is 13 percent, what is the present value of $1,630.47 to be received in four years? B. Les Ismore has just inherited $83,838.44 and wishes to purchase an annuity that will provide him with a steady income over the next 12 years. He has learned that a local Savings and Loan is paying 6 percent annually (compounded once per year). If Les were to deposit his funds there, what constant amount at the end of each year could he withdraw annually so that he would have a zero balance at the end of 12 years? Please explain your work. C. On a contract you have the choice between receiving $500,000 6 years from now or $800,000 12 years from now. If the annual discount rate were 10 percent, which contract would you prefer?