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payment occurs in year 1, the interest rate is 10% and the present value at year zero for the promise is $500, which of the following is right about the payment at year 10? O a. $16.27 O b. $19.27 O c. $47.93 O d. $80.85 O e. None of the above

payment occurs in year 1, the interest rate is 10% and the present value at year zero for the promise is $500, which of the following is right about the payment at year 10? O a. $16.27 O b. $19.27 O c. $47.93 O d. $80.85 O e. None of the above

Essentials Of Investments
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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Your friend promises you an annuity of 30 payments. If the first payment occurs in year 1, the interest rate is 10% and the present value at year zero for the promise is $500, which of the following is right about the payment at year 10? O a. $16.27 O b. $19.27 O c. $47.93 O d. $80.85 e. None of the above
Transcribed Image Text:Your friend promises you an annuity of 30 payments. If the first payment occurs in year 1, the interest rate is 10% and the present value at year zero for the promise is $500, which of the following is right about the payment at year 10? O a. $16.27 O b. $19.27 O c. $47.93 O d. $80.85 e. None of the above
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