Question
21.Salvatore has the opportunity to invest in a scheme which will pay $5000 at the end of each of the next 5 years. He must
21.Salvatore has the opportunity to invest in a scheme which will pay $5000 at the end of each of the next 5 years. He must invest $10,000 at the start of the first year and an additional $10,000 at the end of the first year. What is the present value of this investment if the interest rate is 4%?
A.-$1410.67
B.-$112.23
C.$2643.73
D.$1248.56
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
