How much would you be willing to pay today for an investment that promises to pay...

How much would you be willing to pay today for an investment that promises to pay you pay $26,000 in 35 years if your required return on the investment is 9% per year?

Expert Solution

PV = FV / (1 + r)^t

PV= $26,000 / (1 + 0.09)^35

PV= $1,273.64

jeff jeffy answered 1 year ago

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