The table above shows the interest rates available from investing in risk-free Government of Canada securities with different investment terms.What is the present value (PV) of cash flows from an investment that yields $4000 at the end of each year for the next four years?

Question

Quizplus · Accepted Answer

D) PV of $4000 at 1.8% for 1 year = $3929.27;
PV of $4000 at 2.25% for 2 years = $3825.90;
PV of $4000 at 2.30% for 3 years = $3736.23;
PV of $4000 at 2.66% for 4 years = $3601.26;
sum of these four PVs = $15,093.

The Table Above Shows the Interest Rates Available from Investing