11. An investment requires you to make a $2000 deposit at the end of the year and each subsequent payment is 2% more than the payment before. You do this for 20 year. If the annual effective interest rate of the investment is i = 5%, find the present value of this investment. (A) $28,780.43 (B) $28,880.43 (C) $28,980.43 (D) $29,330.80 (E) $29,983.43 (F) $30,000.30
11. An investment requires you to make a $2000 deposit at the end of the year and each subsequent payment is 2% more than the payment before. You do this for 20 year. If the annual effective interest rate of the investment is i = 5%, find the present value of this investment. (A) $28,780.43 (B) $28,880.43 (C) $28,980.43 (D) $29,330.80 (E) $29,983.43 (F) $30,000.30
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An investment requires you to make a $2000 deposit at the end of the year and
each subsequent payment is 2% more than the payment before. You do this for 20 year. If
the annual effective interest rate of the investment is i = 5%, find the present value of this
11.
investment.
(A) $28,780.43
(B) $28,880.43
(C) $28,980.43
(D) $29,330.80
(E) $29,983.43
(F) $30,000.30
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