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Problem 3 - 7 An investor is considering an investment that will pay $ 2 , 1 5 0 at the end of each year
"Problem
An investor is considering an investment that will pay $ at the end of each year for the next years. He expects to earn a return of percent on his investment, compounded annually.
Required:
a How much should he pay today for the investment?
b How much should he pay if the investment returns are received at the beginning of each year?
Note: For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar.
a Present value of ordinary annuity
b Present value of annuity due
"Problem
An investor is considering an investment that will pay $ at the end of each year for the next years. He expects to earn a return of percent on his investment, compounded annually.
Required:
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eferences
a How much should he pay today for the investment?
b How much should he pay if the investment returns are received at the beginning of each year?
Note: For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar.
a Present value of ordinary annuity
b Present value of annuity due
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