You have been approached to buy an investment which will pay you $1,000 at the end of 4 years. The investment will also pay you $30 per annum (at the end of each year) as well. How much is this investment worth today? Assume interest rate of 8% How should i approach this? is the $30 per annum included in the PV?

You have been approached to buy an investment which will pay you $1,000 at the end of 4 years. The investment will also pay you $30 per annum (at the end of each year) as well. How much is this investment worth today? Assume interest rate of 8% How should i approach this? is the $30 per annum included in the PV?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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