Question

Nabax has an investment that is worth $41,600 and has an expected return of 14.56 percent. The investment is expected to pay her $27,200 in 2 years from today and X in 5 years from today. What is X?

Answer 1

The answer is "$41189.19"

Step-by-step explanation:

Using formula:
`\text{Present value=Cash flows} * \text{Present value of discounting factor(rate \ \%, time period)}`

`\to 41600=(27200)/(1.1456^2)+ (X)/(1.1456^5)\\\\\to 41600= (27200 * 0.761963188)+(X * 0.506798097)\\\\\to 41600=20725.3987+(X * 0.506798097)\\\\\\to X=((41600-20725.3987))/(0.506798097)\\\\`

`=\$41189.19`