Question
A pension fund must pay out $1 million next year, $2 million the following year, $3 million the third year, and $4 million the year
A pension fund must pay out $1 million next year, $2 million the following year, $3 million the third year, and $4 million the year after that. If the discount rate is 6%, what is the duration of this set of payments?
A. 1.8 years
B. 1.63 years
C. 2.29 years
D. 2.94 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
