How much willing to pay today for investment


An investment is expected to return $ 1,200 per year indefinitely. An investor who requires a 10% rate of return on an investment of this type, is willing to pay_________today for this investment?

a. $ 120
b. $ 1,200
c. $12,000
d. $14,000

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Finance Basics: How much willing to pay today for investment
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