If the current rate of interest is 8%, then the present value of an investment that pays $1000 per year and lasts 20 years is closest to:
A) $18,519
B) $45,761
C) $9,818
D) $20,000
Answer: C) PV = C/r (1 - (1 + r)-N
If the current rate of interest is 8%, then the present value of an investment that pays $1000 per year and lasts 20 years is closest to:
A) $18,519
B) $45,761
C) $9,818
D) $20,000
Answer: C) PV = C/r (1 - (1 + r)-N