Question
You are offered a $3,000,000 contract to be paid to you over 6 years at $500,000 per year. The first payment will be made at
You are offered a $3,000,000 contract to be paid to you over 6 years at $500,000 per year. The first payment will be made at the end of the year. If the current market interest rate is 3.5%, what is the contract really worth to you?
| $2,500,000.00 | ||
| $3,275,076.09 | ||
| $2,664,276.51 | ||
| $3,000,000.00 |
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Contemporary Economics An Applications Approach
Authors: Robert Carbaugh
8th Edition
1138652199, 978-1138652194
