Suppose you must make two annual $10,000 payments, the first one starting at the end of Year 5. To accumulate the money to make these payments, you want to make four equal payments into an investment account, the first to be made one year from today. Assuming a 10% rate of return, what is the amount of these four investment payments? $3626. $3740. $3825. $3921.

Suppose you must make two annual $10,000 payments, the first one starting at the end of Year 5. To accumulate the money to make these payments, you want to make four equal payments into an investment account, the first to be made one year from today. Assuming a 10% rate of return, what is the amount of these four investment payments? $3626. $3740. $3825. $3921.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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