John has an investment worth $237,000.00. The investment will make a special payment of X to John in 3 quarters in addition to making regular quarterlypayments to John forever. The first regular quarterly payment to John is expected to be $1,900.00 and will be made in 3 months. All subsequent regularquarterly payments are expected to increase by 0.24 percent per quarter forever. The expected return for the investment is 1.11 percent per quarter. What isX, the amount of the special payment that will be made to John in 3 quarters?$68,045.35 (plus or minus 10 dollars)$66,303.93 (plus or minus 10 dollars)$19,235.79 (plus or minus 10 dollars)$18,609.20 (plus or minus 10 dollars)none of the answers are within 10 dollars of the correct answer

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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John has an investment worth $237,000.00. The investment will make a special payment of X to John in 3 quarters in addition to making regular quarterly
payments to John forever. The first regular quarterly payment to John is expected to be $1,900.00 and will be made in 3 months. All subsequent regular
quarterly payments are expected to increase by 0.24 percent per quarter forever. The expected return for the investment is 1.11 percent per quarter. What is
X, the amount of the special payment that will be made to John in 3 quarters?
$68,045.35 (plus or minus 10 dollars)
$66,303.93 (plus or minus 10 dollars)
$19,235.79 (plus or minus 10 dollars)
$18,609.20 (plus or minus 10 dollars)
none of the answers are within 10 dollars of the correct answer

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