An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the interest rate is 4.07% per year, determine the maximum you would be willing to pay for this investment. Enter your answer rounded to 2 decimal places. Enter your response below. Number

An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the interest rate is 4.07% per year, determine the maximum you would be willing to pay for this investment. Enter your answer rounded to 2 decimal places. Enter your response below. Number

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An investment promises to pay you $5,000 per year forever with the first payment at time 1. If the
interest rate is 4.07% per year, determine the maximum you would be willing to pay for this investment.
Enter your answer rounded to 2 decimal places.
Enter your response below.
Number

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