An Investment Pays You $100 At The End Of The Next 3 Years . The Investment Will Then Pay You $200 At The End Of The Year $300 At The End Of Year 5 And $500 At The End Of Year 6. If The Rate Of Interest On The Investment Is 8% What Is The PV?

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Oddman Profile
Oddman answered
The present value is
100(1.08)-1 +
100(1.08)-2 +
100(1.08)-3 +
200(1.08)-4 +
300(1.08)-5 +
500(1.08)-6 =
((((((500/1.08)+300)/1.08+200)/1.08+100)/1.08+100)/1.08+100)/1.08 =
$923.98

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