Answered: ou will receive $1,000 forever starting…

ou will receive $1,000 forever starting from the end of year 2. The account pays 10% compounded annually. What is the present value today? 1,000 9,091 10,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

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You will receive $1,000 forever starting from the end of year 2. The account pays 10% compounded annually. What is the present value today?

		1,000
		9,091
		10,000

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