Question
Question 6 (1 point) Case 1: Your grandfather has offered you a choice of one of the three following alternatives: $5,000 now; $1,000 a year
Question 6 (1 point)
Case 1: Your grandfather has offered you a choice of one of the three following alternatives: $5,000 now; $1,000 a year for eight years; or $12,000 at the end of eight years. Assuming you could earn 11 percent annually, what is the present value of (ordinary) annuity of $1,000 for eight years?
Question 6 options:
|
| $5,146 |
|
| $5,000 |
|
| $6,120 |
|
| $4,987 |
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance
9th Edition
1133190197, 978-1133190196
