Multiple Choice
You have a savings account that earns 5% interest,compounded annually.A friend has offered you an investment opportunity;he says that if you invest in his new business,he will pay you $10,000 a year for the next five years.What is the maximum amount you would be willing to invest in your friend's business? (Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuity of $1. ) (Use appropriate factor from the PV tables.Round your final answer to the nearest dollar amount. )
A) $43,295
B) $47,500
C) $47,619
D) $50,000
Correct Answer:
Verified
Correct Answer:
Verified
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