Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rosendo has an investment worth $ 3 7 5 , 9 4 0 . 7 5 . The investment will make a special payment of

Rosendo has an investment worth $375,940.75. The investment will make a special payment of X to Rosendo in 3 years from today. The investment also will make regular, fixed annual payments of $67,000.00 to Rosendo with the first of these payments made to Rosendo in 1 year from today and the last of these annual payments made to Rosendo in 8 years from today. The expected return for the investment is 10 percent per year. What is X, the amount of the special payment that will be made to Rosendo in 3 years?
$24,624.43(plus or minus 10 dollars)
$18,500.70(plus or minus 10 dollars)
$11,487.48(plus or minus 10 dollars)
$81,070.00(plus or minus 10 dollars)
none of the answers are within 10 dollars of the correct answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Finance In Construction

Authors: Tony Merna, Yang Chu, Faisal F. Al-Thani

1st Edition

1444334778, 978-1444334777

More Books

Students also viewed these Finance questions