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Find what is estimate of the present value of the investment

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Reference no: EM132932440

Problem 1: An investment pays $1000 every two years (first payment being at t=2). The payment on t=10 will not be paid, but all other payments are scheduled to be paid as planned. If the annual discount rate is assumed to be at 10%, what is your estimate of the present value of the investment (pick the closest integer)?

a. $ 4,527

b. $ 4,376

c. $ 4,158

d. $ 4,762

Reference no: EM132932440

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