Question

An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 12% annually, what is its present value? Round your answer to the nearest cent.

Answer 1

Your parents will retire in 18 years. ... You expect to earn 12% annually on the account. ... An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, ...