Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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5. As the winner of a raffle, you have won a guaranteed £100 every year for ever, starting
today. If you use a discount rate of 8%, what is the present value of this prize?
A. £800.00
B. £1150.00
C. £1157.41
D. £1250.00
E. £1350.00
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Transcribed Image Text:5. As the winner of a raffle, you have won a guaranteed £100 every year for ever, starting today. If you use a discount rate of 8%, what is the present value of this prize? A. £800.00 B. £1150.00 C. £1157.41 D. £1250.00 E. £1350.00
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