On January 1, 2020, you are considering making an investment that will pay three annual payments of $10,000. The first payment is not expected until December 31, 2022. You are eager to earn 4%. What is the present value of the investment on January 1, 2020

$25,396.01

Explanation:

We first calculate the present value of the investment on December 31, 2022 using the present value (PV) of an  ordinary annuity as follows:

PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)

Where;

PV = Present value of the investment on December 31, 2022 = ?

P = yearly payments = $10,000

r = interest rate = 4% = 0.04

n = number of years = 43

Substitute the values into equation (1) to have:

PV = 10,000 × [{1 - [1 ÷ (1+0.4)]^3} ÷ 0.4] = 10,000 × 2.77509103322713 = $27,750.91

Since, the PV of the investment on December 31, 2022 is $27,750.91, we can now calculate its own PV in  January 1, 2020 which is 3 years as follows:

PV in January 2020 = $27,750.91 ÷ (1 + 0.4)^3 = $27,750.91 ÷ 1.092727 = $25,396.01  

answer: most likely c

explanation:

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this