If an investment pays you $54,000 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its present value? O $250,193 O $279.396 O $291,703 O $273,380

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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Use the table below to answer the following questions:
Present Value of an
Annuity of 1 Factor
1/2 Yr
1/2 Yr
Full-Yr
0.9578
0.9578
0.9174
0.9174
0.8417
1.8753
1.7591
0.8787
0.7722
2.7540 2.5313
0.8417
0.7084 3.5957 3.2397
0.8062
0.6499 4.4019
3.8897
0.7722
0.5963 5.1740
4.4859
Assumption: Required annual effective rate (EPR) of return is 9%.
Period
1
2
3
4
5
6
Present Value of 1 Factor
O $250,193
O $279,396
O $291,703
O $273,380
Full-Yr
0.9174
If an investment pays you $54,000 every 6 months for 3 years, starting at the beginning
of each 6 month period, what is its present value?
Transcribed Image Text:Use the table below to answer the following questions: Present Value of an Annuity of 1 Factor 1/2 Yr 1/2 Yr Full-Yr 0.9578 0.9578 0.9174 0.9174 0.8417 1.8753 1.7591 0.8787 0.7722 2.7540 2.5313 0.8417 0.7084 3.5957 3.2397 0.8062 0.6499 4.4019 3.8897 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. Period 1 2 3 4 5 6 Present Value of 1 Factor O $250,193 O $279,396 O $291,703 O $273,380 Full-Yr 0.9174 If an investment pays you $54,000 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its present value?
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