You Own a Contract That Promises an Annuity Cash Flow

question 50

Multiple Choice

You own a contract that promises an annuity cash flow of $100 beginning-of-the-year cash flows for each of the next three years (note: the first cash flow is today) .At an interest rate of 10%,what is the present value of this contract?

• A)$248.69
• B)$273.55
• C)$331.00
• D)$364.10

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