Business, 07.01.2021 19:00, John7Gilbert

P=$150(1-1/1.03)^10/0.03 The equation above gives the present value, P, of an investment that pays the investor $150 per year for1010years. The present value is the dollar amount that is equal to the series of future payments. If the payments are changed from $150 to $75, what is the effect on the present valueP?

a. the present value stays the same
b. the present value is halved
c. the present value doubles
d. the present value increases by 3%

Answers: 1

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P=$150(1-1/1.03)^10/0.03 The equation above gives the present value, P, of an investment that pays...