You recently purchased a 20-year investment that pays you $100 at t = 1, $500 at t = 2, $750 at t = 3, and some fixed cash flow, X, at the end of each of the remaining 17 years. You purchased the investment for $5,544.87. Alternative investments of equal risk have a required return of 9%. What is the annual cash flow received at the end of each of the final 17 years, that is, what is X?

The vale of X = $276.11 (to 2 decimal places)

Explanation:

First of all, let us lay out the particulars for clarity.

pay at t 1 = $100

pay at t 2 = $500

pay at t 3 = $750

Amount investment was purchased for = $5,544.87

percentage return on investment = 9% = 0.09.

Next let us calculate amount earned as return on investment from percentage return;

amount earned from percentage;

= 9% of $5544.87 = 0.09 × 5544.87 = $499.0383

Next let us calculate the total expected return on investment after 20 years

= Amount invested + amount earned from percentage

= 5544.87 + 499.0383 = $6043.9083

Therefore, after 20 years, the invested is expected to yield $6043.9083.

Next let us add the total amount gotten after the first 3 years;

t1 + t2 + t3 = 100 + 500 +750 = $1,350

To get the total amount to be earned in the remaining 17 years, we will subtract the amount gotten after the first 3 years from the total amount expected;

= 6043.9083 - 1350 = $4693.9083

Hence in the next 17 years, the amount to be earned is $4693.9083.

X is the fixed cash flow at the end of each year for the remaining 17 years, so to calculate this, we divide the total amount earned in the 17 year period by 17.

∴ X = 4693.9083 ÷ 17 = $276.1123 = $276.11 ( to 2 decimal places)

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

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