Marang borrowed money that must be repaid in nine payments. The first four payments of R2 000 each are paid at the beginning of each year. Thereafter five payments of R5 000 each are paid at the end of each year. Note there is only one payment per year. If money is worth 6,85% per year, then the present value of these payments is [1] R33 000,00. [2] R27 845,64. [3] R22 588,92. [4] R23 054,54. [5] R27 381,02.
Marang borrowed money that must be repaid in nine payments. The first four payments of R2 000 each are paid at the beginning of each year. Thereafter five payments of R5 000 each are paid at the end of each year. Note there is only one payment per year. If money is worth 6,85% per year, then the present value of these payments is [1] R33 000,00. [2] R27 845,64. [3] R22 588,92. [4] R23 054,54. [5] R27 381,02.
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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Marang borrowed money that must be repaid in nine payments. The first four payments of R2 000 each are paid at the beginning of each year. Thereafter five payments of R5 000 each are paid at the end of each year. Note there is only one payment per year. If money is worth 6,85% per year, then the
[1] R33 000,00.
[2] R27 845,64.
[3] R22 588,92.
[4] R23 054,54.
[5] R27 381,02.
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