Carol Thomas will pay out $6,000 at the end of the year 2, $8,000 at the end of year 3, and receive $10,000 at the end of year 4. With an interest rate of 13 percent, what is the net value of the payments vs. receipts in today's dollars?
A) $7,326.
B) $10,242.
C) $16,372.
D) $4,112.

Question

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The Answer of Carol Thomas will pay out $6,000 at the end of the year 2, $8,000 at the end of year 3, and receive $10,000 at the end of year 4. With an interest rate of 13 percent, what is the net value of the payments vs. receipts in today's dollars?
A) $7,326.
B) $10,242.
C) $16,372.
D) $4,112.

Carol Thomas Will Pay Out $6,000 at the End of the Year