Twelve years ago, you paid for the right to twelve $25,000 annual end-of-the-year cash flows. If discounting the cash flows at an annual rate of 8%, what did you pay for these cash flows back then?
A) $474,428.16
B) $300,000.00
C) $203,474.11
D) $188,401.95
Answer: D
Explanation: D)
PV = PMT × = $25,000 × = $188,401.95.
MODE = END
INPUT 12 8 ? -25,000 0
KEY N I/Y PV PMT FV
CPT 188,401.95
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