Question $5$

$15pts$

You are considering an investment that promises to pay the following:

$$1,000$ in year$-1$

$$2,000$ in year$-3$

$$5,000$ year $-10$

The interest rate associated with investments having similar risk is $10\mathrm{.}0\%.$

How much would you be willing to pay for this investment?

Hint: use a timeline and show work. Do NOT merely type a numerical response without showing the calculation. $(15$ points$)$