Nicholas has an investment worth $2. estme ake a special quarterly payments to Nicholas forever. The first regular quarterly payment to Nicholas is expected to be $1,850.00 and will be mac subsequent regular quarterly payments are expected to increase by 0.10 percent per quarter forever. The expected return for the per quarter. What is X, the amount of the special payment that will be made to Nicholas in 5 quarters? O$86,236.34 (plus or minus 10 dollars) O $91,260.03 (plus or minus 10 dollars) O $77,341.10 (plus or minus 10 dollars) O $72,719.30 (plus or minus 10 dollars)
Nicholas has an investment worth $2. estme ake a special quarterly payments to Nicholas forever. The first regular quarterly payment to Nicholas is expected to be $1,850.00 and will be mac subsequent regular quarterly payments are expected to increase by 0.10 percent per quarter forever. The expected return for the per quarter. What is X, the amount of the special payment that will be made to Nicholas in 5 quarters? O$86,236.34 (plus or minus 10 dollars) O $91,260.03 (plus or minus 10 dollars) O $77,341.10 (plus or minus 10 dollars) O $72,719.30 (plus or minus 10 dollars)
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:Nicholas has an investment worth $235,000.00. The investment will make a special payment of X to Nicholas in 5 quarters in addition to making regular
quarterly payments to Nicholas forever. The first regular quarterly payment to Nicholas is expected to be $1,850.00 and will be made in 3 months. All
subsequent regular quarterly payments are expected to increase by 0.10 percent per quarter forever. The expected return for the investment is 1.24 percent
per quarter. What is X, the amount of the special payment that will be made to Nicholas in 5 quarters?
O $86,236.34 (plus or minus 10 dollars)
O $91,260.03 (plus or minus 10 dollars)
O $77,341.10 (plus or minus 10 dollars)
O $72,719.30 (plus or minus 10 dollars)
O none of the answers are within 10 dollars of the correct answer
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