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What Would You Pay for an Investment That Pays You

Question 96

Multiple Choice

What would you pay for an investment that pays you €20,000 at the end of each year for the next ten years and then returns a maturity value of €300,000 after ten years? Assume that the relevant interest rate for this type of investment is 8%.


A) €138,958
B) €134,202
C) €144,936
D) €273,158

Correct Answer:

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