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(Related to Checlpoint 5.6) (5olving for i) Krx. Van Houlen, who has been married for 23 years, would like to buy his wife an expensive

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(Related to Checlpoint 5.6) (5olving for i) Krx. Van Houlen, who has been married for 23 years, would like to buy his wife an expensive diamond ring with a rale of retum mast Krk eam on his investrent bacamulate enough money lo pay for the ring? (Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay you $4,000 in 29 years: . a. If the appropriate discount rate is 8 percent, what is the presont value of this investment? b. Assume these investments soll for $793 in return for which you receive $4,000 in 29 years. What is the rate of return inwestors earn on this investment if they buy it for $793

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