A prize pays to the winner the amount of $100 to be received at the end of
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Question:
A prize pays to the winner the amount of $100 to be received at the end of each year for 10 consecutive years. However, the first amount is not received until the end of year 5 such that the payments stretch from year 5 through year 14. Which comes closest to the present value of this prize if the interest rate is 2%?
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
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