The Owner of a Certain Investment Is Entitled to Receive

Multiple Choice

The owner of a certain investment is entitled to receive $38 at the end of every six months for 11 years plus an additional single payment of $1,000 in 11 years. Mandy is thinking about purchasing this investment. If Mandy requires a rate of return of 8.4% compounded semi-annually what is the value of this investment to her?

A) $1,538.79
B) $1,240.49
C) $943.28
D) $989.22
E) $1,093.56