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(Related to Checkpoint 5.6) (Solving for i ) You are considering investing in a security that will pay you $3,000 in 33 years. a. If
(Related to Checkpoint 5.6) (Solving for i ) You are considering investing in a security that will pay you $3,000 in 33 years. a. If the appropriate discount rate is 10 percent, what is the present value of this investment? b. Assume these investments sell for $838 in return for which you receive $3,000 in 33 years. What is the rate of return investors earn on this investment if they buy it for $838 ? a. If the appropriate discount rate is 10 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 $838 is \%. (Round to two decimal places.)
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