1 Answer

Sydneyos · Answer 1 · 2021-03-02T05:32:16+0000

Answer:

the most you can pay for an investment that pays you an X amount during one year = X$ / (1 + discount rate)
the most you can pay for an investment that pays you X amount during five years = [X$ / (1 + discount rate)] + [X$ / (1 + discount rate)²] + [X$ / (1 + discount rate)³] + [X$ / (1 + discount rate)⁴] + [X$ / (1 + discount rate)⁵]

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