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What Would You Pay for an Investment That Pays You

Question 68

Multiple Choice

What would you pay for an investment that pays you $10,000 at the end of each year for the next ten years and then returns a maturity value of $150,000 after ten years? Assume that the relevant interest rate for this type of investment is 8%.


A) $69,479.
B) $67,101.
C) $72,468.
D) $136,579.

Correct Answer:

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