The present worth of $1,000 deposits in years 1 through 5 and a single withdrawal of $500 in year 3, if the rate is 6% per year for the first two years and 8 % per year thereafter, is closest to:

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
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The present worth of $1,000 deposits in years 1 through 5 and a single withdrawal of $500 in year 3, if the
interest rate is 6% per year for the first two years and 8% per year thereafter, is closest to:
Select one:
a. $4,242
b. $3,715
c. $3,519
d. $2,327
Transcribed Image Text:The present worth of $1,000 deposits in years 1 through 5 and a single withdrawal of $500 in year 3, if the interest rate is 6% per year for the first two years and 8% per year thereafter, is closest to: Select one: a. $4,242 b. $3,715 c. $3,519 d. $2,327
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