An investor will invest $1,000 now and expect to receive $10 for each of the next 10 years plus $1,000 at the end of the 10th year.Her cash at time period 10 is

Question

Quizplus · Accepted Answer

The investor will receive $10 for each of the next 10 years, which amounts to a total of $100 ($10 x 10 years). In addition, they will receive a lump sum of $1,000 at the end of the 10th year.

Therefore, the total cash received by the investor at time period 10 will be $1,100 ($100 + $1,000). Since the investor invested $1,000 initially, their cash at time period 10 is $1,100 - $1,000 = $100.

Therefore, the correct answer is D.

An Investor Will Invest $1,000 Now and Expect to Receive