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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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