Saleh is considering an investment that will pay $5,000 a year for 7 years, starting one year from today. How much should she pay for this investment if she wishes to earn a 12 percent rate of return? a. $17,899.08 b. $18,023.88

Saleh is considering an investment that will pay $5,000 a year for 7 years, starting one year from today. How much should she pay for this investment if she wishes to earn a 12 percent rate of return? a. $17,899.08 b. $18,023.88

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 6PROB

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Question

Saleh is considering an investment
that will pay $5,000 a year for 7
years, starting one year from today.
How much should she pay for this
investment if she wishes to earn a 12
percent rate of return?
a. $17,899.08
b. $18,023.88
c.. $20,186.75
d. $22,818.78

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