2. Suppose that an investor wishes to deposit $10,000 and $20,000 at year 4 and 5 respectively in an account that pays 7% interest, compounded annually. What is the Net Present Value? A. $121,390 B. $30,000 C. $30,700 D. $21,889

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. Suppose that an investor wishes to deposit $10,000 and $20,000 at year 4 and 5 respectively in an
account that pays 7% interest, compounded annually. What is the Net Present Value?
A. $121,390
B. $30,000
C. $30,700
D. $21,889
Transcribed Image Text:2. Suppose that an investor wishes to deposit $10,000 and $20,000 at year 4 and 5 respectively in an account that pays 7% interest, compounded annually. What is the Net Present Value? A. $121,390 B. $30,000 C. $30,700 D. $21,889
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