Multiple Choice
An investment will pay $3,000 every 3 years with the first payment occurring 3 years from today.The investment has a 12-year life.To compute the present value of this investment you need to calculate the
A) present value of a $3,000,12-year annuity,and divide the result by 4.
B) present value of a $1,000 annuity with 12 time periods.
C) rate of growth for each 3-year period.
D) present value of a $3,000 annual annuity with four payments and discount that value for 3 years.
E) interest rate for the 3-year period.
Correct Answer:
Verified
Correct Answer:
Verified
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