Your friend sweetens the deal, and offers you $2,000 in 5 years with 3.5% interest payments every year. What is the fair price to pay today for this promise if you expect to earn 4.5% from the deal? Group of answer choices 1. $1,912 2. $1,822 3. $1,605 4. $1,977

Your friend sweetens the deal, and offers you $2,000 in 5 years with 3.5% interest payments every year. What is the fair price to pay today for this promise if you expect to earn 4.5% from the deal? Group of answer choices 1. $1,912 2. $1,822 3. $1,605 4. $1,977

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 6P

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Question

Your friend sweetens the deal, and offers you $2,000 in 5 years with 3.5% interest payments every year. What is the fair price to pay today for this promise if you expect to earn 4.5% from the deal?

Group of answer choices

1. $1,912

2. $1,822

3. $1,605

4. $1,977

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