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3) The Milken Company is offering you an investment that promises you $1,000 at the end of ten years if you invest $500 today. What
3) The Milken Company is offering you an investment that promises you $1,000 at the end of ten years if you invest $500 today. What is the annual return on this investment?
7.18%
8.17%
1.87%
None of the above
4) If you deposit $1,000 each year, starting the end of first year, in an account that pays 10% interest per year, compounded annually, what will be the balance in the account after you have made ten payments, assuming you make no withdrawals from the account?
$37,159
$15,937
$73,951
None of the above
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