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3. A bank has created an investment that will offer you the following payments: Years from Now 1 22 Cash Flow to Investor $2,000- $2,000

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3. A bank has created an investment that will offer you the following payments: Years from Now 1 22 Cash Flow to Investor $2,000- $2,000 $2,500- $4,000 3 42 (a) If the rate at which you can borrow money is 4%, how much should you pay today to buy this investment? (b) If you have to pay $7,704 to buy it now, what is the maximum interest rate you should be willing to pay to borrow the (full) purchase price

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