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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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