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Tom Is Considering an Investment That Gives a $400 Payout

Question 8

Multiple Choice

Tom is considering an investment that gives a $400 payout in one year and a $600 payout in two years. If interest rates are 6%, the maximum price that Tom should pay for this investment is $____.


A) 869.53
B) 911.36
C) 943.40
D) 1,000

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