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Charley Wants to Sell You an Investment That Will Pay

Question 54

Multiple Choice

Charley wants to sell you an investment that will pay $1,000 per quarter for 25 years.You desire an annual rate of return of 5.5 percent,compounded quarterly.What is the most you would be willing to pay as a lump sum today for this investment?


A) $54,165.88
B) $57,082.94
C) $51,152.59
D) $212,232.81
E) $218,806.30 Charley wants to sell you an investment that will pay $1,000 per quarter for 25 years.You desire an annual rate of return of 5.5 percent,compounded quarterly.What is the most you would be willing to pay as a lump sum today for this investment? A) $54,165.88 B) $57,082.94 C) $51,152.59 D) $212,232.81 E) $218,806.30

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