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Eric Is Considering an Investment That Will Pay $8,200 a Year

Question 32

Multiple Choice

Eric is considering an investment that will pay $8,200 a year for five years,starting one year from today.What is the maximum amount he should pay for this investment if he desires a rate of return of 11.2 percent?


A) $17,899.08
B) $27,117.36
C) $20,186.75
D) $30,154.50
E) $18,153.55

Correct Answer:

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