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A company promises to give you $1000 each year for the next 10 years and an extra $5000 at the end of year 10 .
A company promises to give you $1000 each year for the next 10 years and an extra $5000 at the end of year 10 . Maximum price you'd pay for this? (r=5%)
$10791.30
=PV(5%,10,1000)
=PV(0.05,10,5000)
=PV(5%,10,1000,-5000)
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