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( Related to Checkpoint 5 . 6 ) ( Solving for i ) You are considering investing in a security that will pay you $

(Related to Checkpoint 5.6)(Solving for i) You are considering investing in a security that will pay you $1,000 in 26 years.
a. If the appropriate discount rate is 8 percent, what is the present value of this investment?
b. Assume these investments sell for $342 in return for which you receive $1,000 in 26 years. What is the rate of return investors earn on this investment if they buy it for $342?
a. If the appropriate discount rate is 8 percent, the present value of this investment is $
(Round to the nearest cent.)
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