Peffers inc. $10,000.00 at the beginning of each quarter for the next seven years. If this amount can yield a return rate of 12.35% compounded quarterly, what is the present value of this investment (round to the nearest cent)?

Peffers inc. $10,000.00 at the beginning of each quarter for the next seven years. If this amount can yield a return rate of 12.35% compounded quarterly, what is the present value of this investment (round to the nearest cent)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Peffers Inc. decided to set aside
$10,000.00 at the beginning of each
quarter for the next seven years. If this
amount can yield a return rate of 12.35%
compounded quarterly, what is the
present value of this investment (round to
the nearest cent)?
O a. $768,579.17
O b. $782,139.10
O c. $326,222.99
O d. $331,978.50

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