Billy Bob just purchased an investment that will pay him $25,000, $20,000, and $10,000 over the next three years, respectively. If Billy Bob expects to earn 6% compounded annually, how much did he pay for his investment?

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Billy Bob just purchased an investment that will pay him $25,000, $20,000, and $10,000 over the next three years, respectively. If Billy Bob expects to earn 6% compounded annually, how much did he pay for his investment?
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