If the Interest Rate Is 6% and Will Remain 6

question 4

Multiple Choice

If the interest rate is 6% and will remain 6% forever, how much would a rational investor be willing to pay for an asset that will pay him 8,480 dollars 1 year from now, 1,123 dollars 2 years from now, and nothing at any other time?

• A)9,000 dollars
• B)63,000 dollars
• C)150,000 dollars
• D)8,000 dollars
• E)10,000 dollars

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