John has an investment worth $237,000.00. The investment will make a special payment of X to John in 3 quarters in addition to making regular quarterly payments to John forever. The first regular quarterly payment to John is expected to be $1,900.00 and will be made in 3 months. All subsequent regular quarterly payments are expected to increase by 0.24 percent per quarter forever. The expected return for the investment is 1.11 percent per quarter. What is X, the amount of the special payment that will be made to John in 3 quarters? $68,045.35 (plus or minus 10 dollars) $66,303.93 (plus or minus 10 dollars) $19,235.79 (plus or minus 10 dollars) $18,609.20 (plus or minus 10 dollars) none of the answers are within 10 dollars of the correct answer
John has an investment worth $237,000.00. The investment will make a special payment of X to John in 3 quarters in addition to making regular quarterly payments to John forever. The first regular quarterly payment to John is expected to be $1,900.00 and will be made in 3 months. All subsequent regular quarterly payments are expected to increase by 0.24 percent per quarter forever. The expected return for the investment is 1.11 percent per quarter. What is X, the amount of the special payment that will be made to John in 3 quarters? $68,045.35 (plus or minus 10 dollars) $66,303.93 (plus or minus 10 dollars) $19,235.79 (plus or minus 10 dollars) $18,609.20 (plus or minus 10 dollars) none of the answers are within 10 dollars of the correct answer
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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Transcribed Image Text:John has an investment worth $237,000.00. The investment will make a special payment of X to John in 3 quarters in addition to making regular quarterly
payments to John forever. The first regular quarterly payment to John is expected to be $1,900.00 and will be made in 3 months. All subsequent regular
quarterly payments are expected to increase by 0.24 percent per quarter forever. The expected return for the investment is 1.11 percent per quarter. What is
X, the amount of the special payment that will be made to John in 3 quarters?
$68,045.35 (plus or minus 10 dollars)
$66,303.93 (plus or minus 10 dollars)
$19,235.79 (plus or minus 10 dollars)
$18,609.20 (plus or minus 10 dollars)
none of the answers are within 10 dollars of the correct answer
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