Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You have been awarded a Pinder Foundation scholarship to help cover your living costs while studying at the University of Melbourne. The scholarship offers a regular payment of $1,000 per month for three years with the first payment occurring in one and a half months’ time. If the relevant discount rate is 9% p.a. compounding monthly, the present value of the scholarship today is closest to:
Group of answer choices
A. $32,789
B. $31,446
C. $31,330
D. Need more information to answer the question
E. $42,474
I already calculated it and I got C ($31,330), is it true? I want to match it with my formula and the steps to solve it.
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