A bank offers you a certificate the yields $600 per year, starting at the end of 1999 and up to the end of 2018 (n=20 years), plus one single payment of $10,000 at the end of 2018. Assuming that you wish to earn 10% interest on your investment, how much are you willing to pay for this certificate at the end of 1998?

Answer rating: 100% (QA)

To determine how much you are willing to pay for the certificate at the end of 1998 we need to calcu... View the full answer