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If You Are to Receive a Payment of $200 at the End

Question 5

Multiple Choice

If you are to receive a payment of $200 at the end of the first year and a payment of $250 at the end of the second year and the market interest rate is 5 percent, the present value of this income stream is


A) $400.37
B) $417.23
C) $450.00
D) $475.37
E) $490.13

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