An Investment Product Promises to Pay $42,000 at the End

Multiple Choice

An investment product promises to pay $42,000 at the end of ten years. If an investor feels this investment should produce a rate of return of 12 percent, compounded annually, what's the most the investor should be willing to pay for the investment?

A) $ 15,146.
B) $ 13,523.
C) $ 42,000.
D) $130,446.$42,000 x .32197* = $13,523 (rounded) *PV of $1: n=10; i=12%