You can expect annual benefit of $15,800 if you deposit $142,200 in a bank account right now. The only catch with this investment is the fact that the annual benefit payments start at the end of the 2d year. The stream of the benefits is expected to continue for somewhere between 15 and 20 years. What is the payback period of this financial deal?
You can expect annual benefit of $15,800 if you deposit $142,200 in a bank account right now. The only catch with this investment is the fact that the annual benefit payments start at the end of the 2d year. The stream of the benefits is expected to continue for somewhere between 15 and 20 years. What is the payback period of this financial deal?
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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![3. You can expect annual benefit of $15,800 if you deposit $142,200 in a bank account right now.
The only catch with this investment is the fact that the annual benefit payments start at the end
of the 2nd year. The stream of the benefits is expected to continue for somewhere between 15
and 20 years. What is the payback period of this financial deal?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F133ba5ad-f80f-4979-95e0-122674d4b1da%2F0f64d959-afd8-46d9-adc6-d7bab1e9f353%2Ff9qqoi6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. You can expect annual benefit of $15,800 if you deposit $142,200 in a bank account right now.
The only catch with this investment is the fact that the annual benefit payments start at the end
of the 2nd year. The stream of the benefits is expected to continue for somewhere between 15
and 20 years. What is the payback period of this financial deal?
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