If You Are to Receive a Payment of $200 at the End

question 87

Multiple Choice

If you are to receive a payment of $200 at the end of the first year and a payment of $250 at the end of the second year at a market interest rate of 5 percent,the present value of this income stream is _____

• A)$400.37.
• B)$417.23.
• C)$450.00.
• D)$475.37.
• E)$490.13.