Answered: What is the current value of a security…

What is the current value of a security that pays $500 per year for 7 years if similar investments now earn 12%. O a. $226. O b. $5,044. O c. $3,500. O d. $2,282.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter27: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3QR

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What is the current value of a security that pays $500 per year for 7
years if similar investments now earn 12%.
a. $226.
O b. $5,044.
c. $3,500.
O d. $2,282.

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