An investment offers the following: a series of $1000 annual payments, starting one year from now, for a total of 12 payments. If your opportunity cost (as an EAR) is 5%, what is the investment worth to you today? O $11,079.20 $9,214.56 O $10,103.26 O $8,863.25 O $10.241.19
An investment offers the following: a series of $1000 annual payments, starting one year from now, for a total of 12 payments. If your opportunity cost (as an EAR) is 5%, what is the investment worth to you today? O $11,079.20 $9,214.56 O $10,103.26 O $8,863.25 O $10.241.19
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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Transcribed Image Text:An investment offers the following: a series of $1000 annual payments, starting one year from now,
for a total of 12 payments. If your opportunity cost (as an EAR) is 5%, what is the investment worth
to you today?
$11.079.20
O $9.214.56
O $10.103.26
$8,863.25
O $10,241.19
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