Suppose you must make two annual $10,000 payments, the first one starting at the end of Year 5. To accumulate the money to make these payments, you want to make four equal payments into an investment account, the first to be made one year from today. Assuming a 10% rate of return, what is the amount of these four investment payments? $3626. $3740. $3825. $3921.

Suppose you must make two annual $10,000 payments, the first one starting at the end of Year 5. To accumulate the money to make these payments, you want to make four equal payments into an investment account, the first to be made one year from today. Assuming a 10% rate of return, what is the amount of these four investment payments? $3626. $3740. $3825. $3921.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 12P

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