Question
An investment will pay you $10,000 in 10 years AND it also will pay you $400 at the end of each of the next
An investment will pay you $10,000 in 10 years AND it also will pay you $400 at the end of each of the next 10 years. If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment? NOTE: You will need to calculate the PV of the lump sum AND the PV of the payments. Then add the two amounts together.
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