Question
How can the following question be solved using a financial calculator? Given your annual required rate of return of 8%, how much are you willing
Given your annual required rate of return of 8%, how much are you willing to pay for a security that will pay nothing for three years then pays $20,000/year (at year end) for three years.
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Step: 1
1 Calculate the present value of the cash flows after three years ie the annuity PV ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
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