Multiple Choice
Scenario: An investor is considering three different investment options. Investing in Option A pays him $4,000 after 6 years, investing in Option B pays him $7,600 after 7 years, and investing in Option C pays him $9,000 after 8 years. If he deposits the amount with a bank, he would receive an annual interest rate of 9 percent.
-Refer to the scenario above.What is the present value of Option A?
A) $2,464.11
B) $2,385.07
C) $2,463.66
D) $4,898.46
Correct Answer:
Verified
Correct Answer:
Verified
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