Answered: plan A plan B plan C Down payment…

plan A plan B plan C Down payment 1,789.91 2,309.65 3,764.51 Annual payments 5,097.70 7,450.16 9,845.78 Years 20 20 20 Discount rate 12% 12% 12% What is the present value of plan B?

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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Question

plan A
plan B
plan C
Down payment
1,789.91
2,309.65
3,764.51
Annual payments
5,097.70
7,450.16
9,845.78
Years
20
20
20
Discount rate
12%
12%
12%
What is the present value of plan B?

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