Question
An investment promises to pay $7,000 at the end of each year for the next five years and $2,000 at the end of each year
An investment promises to pay $7,000 at the end of each year for the next five years and $2,000 at the end of each year for years 6 through 8. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent.
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If you require a 13 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment? $
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Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 13 percent required rate of return? $
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