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How much invested now at an interest rate of t10% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $5,000 occurring two yoars from now, the second payment in the amount of $7,000 four years thereattet, and the third payment in the amount of $9.000 sx years thereafter. OA.$8.737 OB $9,634 OC $10,951 OD$12,573

How much invested now at an interest rate of t10% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $5,000 occurring two yoars from now, the second payment in the amount of $7,000 four years thereattet, and the third payment in the amount of $9.000 sx years thereafter. OA.$8.737 OB $9,634 OC $10,951 OD$12,573

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12PROB
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How much invested now at an interest rate of 10% oompounded annually would be just suficient to provide three payments as follows the first payment in the amount of $5,000 occurring two yoars from now, the second payment in the amount of 57,000 four years thereafter, and the third payment in the amount of $9.000 sx years thereafter. OA. $8.737 OB $9.634 OC $10,951 OD$12,573
Transcribed Image Text:How much invested now at an interest rate of 10% oompounded annually would be just suficient to provide three payments as follows the first payment in the amount of $5,000 occurring two yoars from now, the second payment in the amount of 57,000 four years thereafter, and the third payment in the amount of $9.000 sx years thereafter. OA. $8.737 OB $9.634 OC $10,951 OD$12,573
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