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I need help with these questions (Related to Checkpoint 5.6) (Solving for i) Kirk Van Houten, who has been married for 22 years, would like
I need help with these questions
(Related to Checkpoint 5.6) (Solving for i) Kirk Van Houten, who has been married for 22 years, would like to buy his wife an expensiv diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $10,000 in 8 years. Kirk currently has $4,469 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring? The annual rate of return Kirk must earn on his investment to accumulate enough money to pay for the ring is% (Round to two decimal places) (Related to Checkpoint 5.6) (Solving for i) You are considering investing in a security that will pay you $3,000 in 35 years. a. If the appropriate discount rate is 9 percent, what is the present value of this investment? b. Assume these investments sell for $745 in return for which you receive $3,000 in 35 years. What is the rate of return investors earn on this investment if they buy it for $745? a. If the appropriate discount rate is 9 percent, the present value of this investment is $ (Round to the nearest cent.) b. The rate of return investors can earn on this investment if they buy it for $745 is% (Round to two decimal places) Step by Step Solution
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