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SHOW ALL WORK Matt is considering the purchase of an investment that will pay him $12,500 in 12 years. If Matt wants to earn a

SHOW ALL WORK

Matt is considering the purchase of an investment that will pay him $12,500 in 12 years. If Matt wants to earn a return equal to 7 percent per year (annual compounding), what is the maximum amount he should be willing to pay for the investment today?

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