i $8,000 is invested in a certain business at the start of the year, the investor will receive $2,400 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 5% per year? OA $255 OB. 1612 OC. $510 OD. 1816

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
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If $8,000 is invested in a certain business at the start of the year, the investor will receive $2,400 at the end of each of the next four years. What is the present value of this business opportunity if the
Interest rate is 5% per year?
OA. $255
OB. 1012
OC. $510
OD. 1816
Transcribed Image Text:If $8,000 is invested in a certain business at the start of the year, the investor will receive $2,400 at the end of each of the next four years. What is the present value of this business opportunity if the Interest rate is 5% per year? OA. $255 OB. 1012 OC. $510 OD. 1816
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