Stephen has learned that his great-aunt intends to give him $4,000 each year he is studying at

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Stephen has learned that his great-aunt intends to give him $4,000 each year he is studying at university. Tuition must be paid in advance, so Stephen would like to receive his payments at the beginning of each school year. How much will his great-aunt have to invest today at 7 percent, to make the four annual (start-of-year) payments? Assume that Stephen will be starting school in four years.

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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