An investment promises a payoff of $195 two and one-half years from today. At a discount rate of 7.5% per year, what is the present value of this investment?
A) $162.03
B) $162.75
C) $169.47
D) There is not enough information to answer this question.
Answer: B
Explanation: B) PV = = $162.75
MODE = END
INPUT 2.5 7.5 ? 0 -195
KEY N I/Y PV PMT FV
CPT 162.75
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