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A 5-year investment makes annual payments to investors with the first one starting one year from now. The first three payments are valued at $100k
A 5-year investment makes annual payments to investors with the first one starting one year from now. The first three payments are valued at $100k and the last two are the same. In addition to the final payment, investors who hold their investments until the end of year 5 will each receive a guaranteed amount of 1 million. The investment costs each investor $1,104,315. With an effective annual rate of 10%, calculate the amount of each of the last two payments. (Round to the nearest thousand)
656k | ||
609k | ||
238k | ||
199k | ||
180k |
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