The Present Value at J₁₂ of a $10,000 Payment Today,followed

question 34

Multiple Choice

The present value at j₁₂ of a $10,000 payment today,followed by 32 monthly payments of $5000 is $136,335.69.What is the present value of 33 monthly payments of $2000,first payment made today,if these payments earn the same interest rate,j₁₂?

• A)$48,534.28
• B)$50,534.28
• C)$52,534.28
• D)Cannot be determined without knowing the value of j₁₂

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Definitions:

Dollar-Euro Market

The foreign exchange market where the US dollar and the Euro are traded against each other.

Increased Demand

A situation where consumers are willing and able to purchase more of a good or service at each price level, leading to a shift rightward of the demand curve.

U.S. Buyers

Individuals or entities within the United States that purchase goods or services, either domestically or from international markets.

Demand for British Pounds

The desire or need by individuals, businesses, or countries to purchase or hold British currency for the purpose of investment or transactions.