A FIN300 student wants to put her savings in an investment that promises to pay her $450 in one year, $550 in the second and third year, $300 in year five, $800 in the following three years. How much would she need to pay for this investment if she earns a 5% return on her savings.
Thanks for any help
Finance question?
You should really do your own homework because of the test. Just incase your stuck I%26#039;ll help you out.
$3,344.60
= 450/(1.05) + 550/(1.05)^2 + 550/(1.05)^3 + 300/(1.05)^5 + 800/(1.05)^6 + 800/(1.05)^7 + 800/(1.05)^8
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