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Catherine considers an investment opportunity that will compensate her $5,520 at the end of each of the next 3 years. The interest rate is 2.1%

Catherine considers an investment opportunity that will compensate her $5,520 at the end of each of the next 3 years. The interest rate is 2.1% per year. This opportunity, however, requires investment of $1,380 today and an additional investment at the end of the second year of $6,900. The interest rate is 2.1% per year. Use the information given to answer the following question. What is the present value of the investment opportunity?

  • A. $15,888.
  • B. $10,600.
  • C. $11,236.
  • D. $10,000.

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