An Investment Pays $400 in One Year, X Amount of Dollars

Multiple Choice

An investment pays $400 in one year, X amount of dollars in two years, and $500 in 3 years. The total present value of all the cash flows (including X) is equal to $1500. If i is 6%, what is X?

A) $702.83
B) $822.41
C) $789.70
D) $749.67
E) $600.00 X = [1500 - (400/1.06) - (500/1.06³) ]*1.06²