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Carol Thomas Will Pay Out $6,000 at the End of Year

Question 98

Multiple Choice

Carol Thomas will pay out $6,000 at the end of year two and $8,000 at the end of year three. Then Carol will receive $10,000 at the end of year four. With an interest rate of 10%, what is the net value of the payments versus receipts in today's dollars?


A) ($7,326)
B) ($10,242)
C) ($17,794)
D) ($4,134)

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