A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 12% less than the previous year's return. If money is worth 5%, what is the equivalent present worth for the investment? $
A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of $30,000 occurs at the end of the first year. Each successive year yields a return that is 12% less than the previous year's return. If money is worth 5%, what is the equivalent present worth for the investment? $
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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![A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of $30,000 occurs at the end of the first
year. Each successive year yields a return that is 12% less than the previous year's return. If money is worth 5%, what is the equivalent
present worth for the investment? $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ed0f241-5ca8-4c58-a330-6e709e710335%2F2ddeeb18-a3d8-448e-8cf6-bf8b5f4d6403%2Fdp36qh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of $30,000 occurs at the end of the first
year. Each successive year yields a return that is 12% less than the previous year's return. If money is worth 5%, what is the equivalent
present worth for the investment? $
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