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Is this answer correct? PROBLEM 7 An investment that you are considering promises to pay $2,000 semiannually for the next two years, beginning six months
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PROBLEM 7 | ||
An investment that you are considering promises to pay $2,000 semiannually for the next two years, | ||
beginning six months from now. You have determined that the appropriate opportunity cost (discount) | ||
rate is 8 percent, compounded quarterly. What is the present value of this investment? | ||
ANSWER | ||
I | 8% | |
N | 8 | |
PMT | $ 4,000.00 | |
PV | $22,986.56 |
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