Question
You are expecting to receive $1,500 in a lump sum in 3 years from now. If the interest rate in year 1 is 1.5%, and
You are expecting to receive $1,500 in a lump sum in 3 years from now. If the interest rate in year 1 is 1.5%, and the interest rate in year 2 is 2.5% and the interest rate is 4% in year 3, how much in a lump sum that you need to deposit today in order to be able to collect $1,500 at the end of three years from today?
A. $1,623.23
B. $1,622.99
C. $1,434.48
D. $1,396.15
E. $1,386.33
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
