Question
Problem 9. For winning first prize in an essay contest, you are offered a choice of prizes: A. a single payment of P dollars now;
Problem 9. For winning first prize in an essay contest, you are offered a choice of prizes: A. a single payment of P dollars now; or
B. two payments: $300 one year from now and $400 two years from now.
To the nearest cent, what would P have to be in order for choices A and B to have equal value? Assume that all payments will be deposited as soon as they are received into an account paying 5% interest, compounded annually.
(A) $653.06 (B) $680.95 (C) $685.71 (D) $647.30 (E) $648.53 (F) $700.00
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Introduction to Real Analysis
Authors: Robert G. Bartle, Donald R. Sherbert
4th edition
471433314, 978-1118135853, 1118135857, 978-1118135860, 1118135865, 978-0471433316
