Consider an Investment That Pays $1000 Certain at the End

question 41

Multiple Choice

Consider an investment that pays $1000 certain at the end of each of the next four years.If the investment costs $3500 and has an NPV of $74.26,then the four-year risk-free interest rate is closest to:

• A)4.50%.
• B)4.58%.
• C)4.55%.
• D)4.53%.

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Definitions:

Format Painter

A tool in many software applications used to quickly apply formatting from one object or text to another.

Custom Formatting

Custom formatting refers to the process of applying specific formatting options to data in applications like Excel, allowing for personalized presentation styles.

Format Designer

A tool or feature allowing users to customize the layout and visual aspects of documents, reports, or data presentations.

Gradient Fill

A graphical effect consisting of a smooth transition from one color to another across a surface or figure.