If the interest rate is 19% and will remain 19% forever, how much would a rational investor be willing to pay for an asset that will pay him 2,380 dollars 1 year from now, 1,416 dollars 2 years from now, and nothing at any other time?
A) 2,000 dollars
B) 3,000 dollars
C) 15,789.47 dollars
D) 60,000 dollars
E) 4,000 dollars
Correct Answer:
Verified
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