Your Inheritance Will Pay You $100,000 a Year for Five

question 61

Multiple Choice

Your inheritance will pay you $100,000 a year for five years beginning now. You can invest it in a CD that will pay 7.75 percent annually. What is the present value of your inheritance? (Round to the nearest dollar.)

• A) $399,356
• B) $401,916
• C) $433,064
• D) $467,812

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