A business promises to pay the investor of $2,000 today for a payment of $500 in one year's time, $1,000 in two years' time and $1,000 in three years' time. What is the present value of this business opportunity if the interest rate is 3% per year? A. $412 B. $343 C. $172 D. $549
A business promises to pay the investor of $2,000 today for a payment of $500 in one year's time, $1,000 in two years' time and $1,000 in three years' time. What is the present value of this business opportunity if the interest rate is 3% per year? A. $412 B. $343 C. $172 D. $549
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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