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You are considering two investments. Investment 1 is an investment that will pay you $2100 in one year, $2700 in two years and $4800 in
You are considering two investments. Investment 1 is an investment that will pay you $2100 in one year, $2700 in two years and $4800 in three years. Investment 2 is a three-year ordinary annuity. If you earn a 9% return per year, what would be the ordinary annuity payment required at the end of each year that would make you indifferent between either investment?
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impossible to determine | |
$3,123 | |
$2,500 | |
$2,756 | |
$3,200 |
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