What is the present value of the investment at a discount
Jack is offered an investment opportunity that will pay him $500 a year for 10 years, (i.e., 10 payments), starting 5 years from today. What is the present value of the investment at a discount rate of 8%?
Now Priced at $10 (50% Discount)
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jack is offered an investment opportunity that will pay him 500 a year for 10 years ie 10 payments starting 5 years
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