22-A person invested SR 100,000 in a fund that pays 10% compounded annually. His netrevenue the 1" year was SR 25,000. Each year, thereafter, his revenue increased SR1,000/yr. After EOY 10, his revenue started decreasing by 6%. What is the present wof his investment over a 20-year period?a. SR 137,525.47b. SR 61,019.95C. SR 237,525.47d. SR 176,505.52

Present Value: It is the present worth of the future cash flows discounted at a specific interest…

Answered: year 1,000/yr. After EOY 10, his…

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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year 1,000/yr. After EOY 10, his revenue started decreasing by 6%. What is the present w of his investment over a 20-year period? a. SR 137,525.47