Question
In: Finance
You have been offered an investment that will pay you a lump sum of $30,000 25...
You have been offered an investment that will pay you a lump sum of $30,000 25 years from today, along with a payment of $1,000 per year for 25 years starting one year from today. How much are you willing to invest today to have this investment in your portfolio assuming you wish to earn a rate of 6 percent compounded annually?
Solutions
Expert Solution
We know that,
Future Value = Present value/ (1+rate)^years
19773.3 is the amount you willing to invest today to have this investment in your portfolio.
kindly do inform me in case you have any queries.
jeff jeffy answered 2 years agoRelated Solutions
You have been offered an investment that will pay you a lump sum of $30,000 25...
You have been offered an investment that will pay you a lump sum
of $30,000 25 years from today, along with a payment of $1,000 per
year for 25 years starting one year from today. How much are you
willing to invest today to have this investment in your portfolio
assuming you wish to earn a rate of 6 percent compounded
annually?
Round the answer to the nearest whole number.
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