3.

A) What price should you pay today in order to earn 30% per year over the life of the investment?

B) What price should you pay today in order to earn 7% per year over the life of the investment?

C) What price should you pay in order to LOSE 10% per year over the life of the investment?

D) What price should you pay today in order to earn 15% per year for the first 3 years, and then earn 8% per year thereafter?

6.00 6.00 4.00 i 2 3 4 5 6 7 8 9 Years g=0.07 P = ? You're trying to determine how much you should pay, today, for the investment, in order to earn a specific rate of return. (Also known as "pricing an investment in order to earn a return"). 6.00 6.00 4.00 i 2 3 4 5 6 7 8 9 Years g=0.07 P = ? You're trying to determine how much you should pay, today, for the investment, in order to earn a specific rate of return. (Also known as "pricing an investment in order to earn a return")