An investment has infinite life and makes annual payments of $3000 for the first 5 years and $1600 per year thereafter. Using 6% annual interest rate, compute the present worth of the annual disbursements. I got 32600.
An investment has infinite life and makes annual payments of $3000 for the first 5 years and $1600 per year thereafter. Using 6% annual interest rate, compute the present worth of the annual disbursements. I got 32600.
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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An investment has infinite life and makes annual payments of $3000 for the first 5 years and $1600 per year thereafter. Using 6% annual interest rate, compute the present worth of the annual disbursements.
I got 32600.
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