Suppose you are offered the alternative of receiving either $2,500 at the end of 6 years or $1,200 today. What interest would make you indifferent to your choice between $1,200 and the promise of $2,500 at the end of sixyears? OA 6% OBIN OC 13% OD 12% QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r3 and ending at the end of year 12? The interost rate is 20% compounded annually. S600

Suppose you are offered the alternative of receiving either $2,500 at the end of 6 years or $1,200 today. What interest would make you indifferent to your choice between $1,200 and the promise of $2,500 at the end of sixyears? OA 6% OBIN OC 13% OD 12% QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r3 and ending at the end of year 12? The interost rate is 20% compounded annually. S600

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

Suppose you are offered the alternative of receiving either $2,500 at the end of 6 years or $1,200 today. What interest would
make you indifferent to your choice between $1,200 and the promise of $2,500 at the end of sixyears?
OA 6%
OC 13%
OD 12%
QUESTION 10
What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea
r 3 and ending at the end of year 12? The interest rate is 20% compounded annually.
12
$600
44 4 4
44444
QUESTION 10
What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea
r3 and ending at the end of year 12? The interest rate is 20% compounded annually
$600
12
OA S4,347
OB 55216
OC S7511
OD S0.250

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