Question

Asked Sep 22, 2019

Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?

Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.

Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.

A. $31.59

B. $31.30

C. $26.04

D. $25.74

E. $29.25

Step 1

**Calculate the present value of investment.**

Step 2

**Excel workings:**

Step 3

From the above calculation it is clear that options "A, B, C and D...

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