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P 5-40 (similar to) Question Help You are thinking about investing $4,610 in your friend's landscaping business. Even though you know the investment is risky
P 5-40 (similar to) Question Help You are thinking about investing $4,610 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth $5,665 next year. You notice that the rate for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of 7% for the year. What should you do? The present value of the return is $ . (Round to the nearest cent.) P 5-34 (similar to) Question Help If the rate of inflation is 5.6%, what nominal interest rate is necessary for you to earn a 2.2% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate is %. (Round to two decimal places.)
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