An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of the next 10 years (Years 1 through 10). If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment?
An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of the next 10 years (Years 1 through 10). If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of the
next 10 years (Years 1 through 10). If the annual interest rate is 6%, how much would you be willing
to pay today for this type of investment?
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