How much would you be willing to pay today for an investment that would return P1,250 each year for the next 10 years, assuming a discount rate of 12 percent? A. P4,062.75 B. P5,062.75 C. P6,062.75 D. P7,062.75 E. None of the above
How much would you be willing to pay today for an investment that would return P1,250 each year for the next 10 years, assuming a discount rate of 12 percent? A. P4,062.75 B. P5,062.75 C. P6,062.75 D. P7,062.75 E. None of the above
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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Question
How much would you be willing to pay today for an investment that would return P1,250 each year for the next 10 years, assuming a discount rate of 12 percent?
A. P4,062.75
B. P5,062.75
C. P6,062.75
D. P7,062.75
E. None of the above
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