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An investment in a real estate venture will provide returns at the end of the next four years as follows: year 1, $7,500; year 2,
An investment in a real estate venture will provide returns at the end of the next four years as follows: year 1, $7,500; year 2, $9,500; year 3, $11,500; and year 4, $14,500. An investor wants to earn a 12 percent return compounded annually on her investment.
Required:
a. How much should she pay for the investment? b. How much should she pay for the investment if interest is compounded monthly?
(For all requirements, do not your round intermediate calculations and round your final answers to the nearest whole dollar amount.)
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