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Weston Inc

Question 14

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Weston Inc.just agreed to pay $8,000 today,$10,000 in one year,and $15,000 in two years to a landowner to explore for,but not extract,valuable minerals.If the landowner invests the money at a rate of 5.5% compounded annually,what is the investment worth two years from today?

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FV = Σ(PV × (1 + r)n)...

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