You are offered an investment that will generate annual cash flows for 12 years starting one year from today. The expected amounts of these cash flows are given in the table below. What is the present value of this investment today if the annual interest rate is 10.9%? Year 1 2 3 4 5 6 7 8 9 10 11 12 Cashflow ($) 985 64 560 122 680 82 303 56 560 2

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter7: Percents
Section7.7: Simple And Compound Interest
Problem 23E
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You are offered an investment that will generate annual cash flows for 12 years starting one year from today. The expected amounts of these cash flows are given in the table below. What is the present value of this investment today if the annual interest rate is 10.9%? Year 1 2 3 4 5 6 7 8 9 10 11 12 Cashflow ($) 985 64 560 122 680 82 303 56 560 2
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