An investment pays you $1000 at the end of each of the next 3 years. The investment will then pay you $2000 at the end of Year 4, $3000 at the end of Year 5, and $5000 at the end of Year 6. If the interest rate carned on the investment is 8 percent, what is its present value? What is its future value?
An investment pays you $1000 at the end of each of the next 3 years. The investment will then pay you $2000 at the end of Year 4, $3000 at the end of Year 5, and $5000 at the end of Year 6. If the interest rate carned on the investment is 8 percent, what is its present value? What is its future value?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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