Solved

A Business Promises to Pay the Investor of $2000 Today

Question 96

Multiple Choice

A business promises to pay the investor of $2000 today a payment of $500 in one year's time,$1000 in two years' time and $1000 in three years' time.What is the present value of this business opportunity if the interest rate is 5% per year?


A) $247.06
B) $253.78
C) $256.88
D) $261.07
E) $273.09

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents