Drew receives an inheritance that pays him $54,000 every three months for the next two years. hich of the following is closest to the present value (PV) of this inheritance if the interest rate is 0% (EAR)? $314,366 $392,957 B) $471,549 D) $432,000
Drew receives an inheritance that pays him $54,000 every three months for the next two years. hich of the following is closest to the present value (PV) of this inheritance if the interest rate is 0% (EAR)? $314,366 $392,957 B) $471,549 D) $432,000
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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( explain all point of question with proper answer).
![8. Drew receives an inheritance that pays him $54,000 every three months for the next two years.
Which of the following is closest to the present value (PV) of this inheritance if the interest rate is
8.9% (EAR)?
A) $314,366
C) $392,957
B) $471,549
D) $432,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ba4f7b7-af50-458d-97fc-8501a972edae%2Faf91c7e0-566a-49d3-a44f-ef3554fa1181%2F42ddeel_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. Drew receives an inheritance that pays him $54,000 every three months for the next two years.
Which of the following is closest to the present value (PV) of this inheritance if the interest rate is
8.9% (EAR)?
A) $314,366
C) $392,957
B) $471,549
D) $432,000
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