You just signed a business consulting contract with one of your clients. The client will pay you $45,000 every year for the service you will provide. You anticipate the annual general inflation rate over the following years to be 5%. If the client pays the consulting fee at the end of each year, what is the worth of the fourth payment in constant dollars? A) $40,426.56 B) $54,697.78 C)$37,021.61 D) Answers A, B and C are not correct
You just signed a business consulting contract with one of your clients. The client will pay you $45,000 every year for the service you will provide. You anticipate the annual general inflation rate over the following years to be 5%. If the client pays the consulting fee at the end of each year, what is the worth of the fourth payment in constant dollars? A) $40,426.56 B) $54,697.78 C)$37,021.61 D) Answers A, B and C are not correct
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You just signed a business consulting contract with one of your clients.
The client will pay you $45,000 every year for the service you will provide. You anticipate the
annual general inflation rate over the following years to be 5%. If the client pays the consulting
fee at the end of each year, what is the worth of the fourth payment in constant dollars?
A) $40,426.56
B) $54,697.78
C)$37,021.61
D) Answers A, B and C are not correct
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