Question 6.29 The following three sets of cash flows have the same present value: . 10,000 payable in 1 year . 1,200 at the end of each year for 12 years, with the first payment to be made in one year X per year, with the first payment to be made in 20 years and the final payment to be made in 30 years The force of interest is constant. Calculate X. A 281 B 4,971 C 5,299 D 5,341 E 5,693
Question 6.29 The following three sets of cash flows have the same present value: . 10,000 payable in 1 year . 1,200 at the end of each year for 12 years, with the first payment to be made in one year X per year, with the first payment to be made in 20 years and the final payment to be made in 30 years The force of interest is constant. Calculate X. A 281 B 4,971 C 5,299 D 5,341 E 5,693
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:Question 6.29
The following three sets of cash flows have the same present value:
10,000 payable in 1 year
1,200 at the end of each year for 12 years, with the first payment to be made in
one year
.
X per year, with the first payment to be made in 20 years and the final payment to
be made in 30 years
The force of interest is constant.
Calculate X.
A 281
B 4,971
C 5,299
D 5,341
E 5,693
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