* Your answer is incorrect. Abe has learned that his great-aunt intends to give him $2,000 each year he is studying at university. Tuition must be paid in advance, so Abe would like to receive his payments at the beginning of each school year. How much will his great-aunt have to invest today at 5 percent to make the four annual (start-of-year) payments? Assume that Abe will be starting school in five years. (Round answer to 2 decimal places, e.g. 125.12. Do not round your intermediate calculations.) Amount that must be invested today 7091.90
* Your answer is incorrect. Abe has learned that his great-aunt intends to give him $2,000 each year he is studying at university. Tuition must be paid in advance, so Abe would like to receive his payments at the beginning of each school year. How much will his great-aunt have to invest today at 5 percent to make the four annual (start-of-year) payments? Assume that Abe will be starting school in five years. (Round answer to 2 decimal places, e.g. 125.12. Do not round your intermediate calculations.) Amount that must be invested today 7091.90
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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Transcribed Image Text:x Your answer is incorrect.
Abe has learned that his great-aunt intends to give him $2,000 each year he is studying at university. Tuition must be paid in
advance, so Abe would like to receive his payments at the beginning of each school year. How much will his great-aunt have to
invest today at 5 percent to make the four annual (start-of-year) payments?
Assume that Abe will be starting school in five years. (Round answer to 2 decimal places, e.g. 125.12. Do not round your intermediate
calculations.)
Amount that must be invested today
7091.90
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