Question
Why the answer is B?
n investment offers to pay $ 100 a year forever starting at the end of ear 6 If the interest rate is 8%, what is the investments value today? Yeur6 A. $787.71 B, $850.73 C. $1,250 D. $1,586.87 It will be worth 100/0.08 S1,250 at the end of year 5, and therefore worth $1,250/1.0865 $850.73 today. 1 00 008(H 1250
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