3. A certain investment will pay you $50 at the end of every 6 months for 17 years. At the end of the 17 years, the investment will pay you an additional $1000 along with the last regular $50 payment. What is the fair market value of the investment if the prevailing rate of return is 8.5% compounded semiannually?

3. A certain investment will pay you $50 at the end of every 6 months for 17 years. At the end of the 17 years, the investment will pay you an additional $1000 along with the last regular $50 payment. What is the fair market value of the investment if the prevailing rate of return is 8.5% compounded semiannually?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

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