Question
Q 12. You are considering two investments: a) Investment A promises to pay $125 per month for 24 months. You are willing to pay $2736
Q 12. You are considering two investments:
a) Investment A promises to pay $125 per month for 24 months. You are willing to pay $2736 for this investment. Find the effective rate for the investment.
b) Investment B has the same effective rate as Investment A, but it pays $1200 per year forever. How much would you be willing to pay for Investment B? Please show your work.
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Financial statements
Authors: Stephen Barrad
5th Edition
978-007802531, 9780324186383, 032418638X
