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A seller offers a security that is guaranteed to pay $110 every week for the next 8 years, with the first payment one week from now. How much are you willing to pay for this security now if the APR is 11% (use at least 4 decimals)? For simplicity's sake, assume there are 52 weeks in a year; and that compounding is annual. Group of answer choices $24,259 $30,411 $30,347 $28,854 $19,855

A seller offers a security that is guaranteed to pay $110 every week for the next 8 years, with the first payment one week from now. How much are you willing to pay for this security now if the APR is 11% (use at least 4 decimals)? For simplicity's sake, assume there are 52 weeks in a year; and that compounding is annual. Group of answer choices $24,259 $30,411 $30,347 $28,854 $19,855

Essentials Of Investments
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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A seller offers a security that is guaranteed to pay $110 every week for the next 8 years, with the first payment one week from now. How much are you willing to pay for this security now if the APR is 11% (use at least 4 decimals)? For simplicity's sake, assume there are 52 weeks in a year; and that compounding is annual. Group of answer choices $24,259 $30,411 $30,347 $28,854 $19,855
Transcribed Image Text:A seller offers a security that is guaranteed to pay $110 every week for the next 8 years, with the first payment one week from now. How much are you willing to pay for this security now if the APR is 11% (use at least 4 decimals)? For simplicity's sake, assume there are 52 weeks in a year; and that compounding is annual. Group of answer choices $24,259 $30,411 $30,347 $28,854 $19,855
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