Question
3. XYZ has an investment worth $56,000. The investment will make a special, extra payment of X to XYZ in 2 years from today. The
3.
XYZ has an investment worth $56,000. The investment will make a special, extra payment of X to XYZ in 2 years from today. The investment also will make regular, fixed annual payments of $12,000 to XYZ with the first of these payments made to XYZ in 1 year from today and the last of these annual payments made to XYZ in 5 years from today. The expected return for the investment is 12.3 percent per year. What is X, the amount of the special payment that will be made to XYZ in 2 years?
a.
An amount less than $10,000 or an amount equal to or greater than $30,000
b.
An amount equal to or greater than $10,000 but less than $17,000
c.
An amount equal to or greater than $17,000 but less than $22,000
d.
An amount equal to or greater than $22,000 but less than $26,000
e.
An amount equal to or greater than $26,000 but less than $30,000
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