(Solving for i) You are considering investing in a security that will pay you $2,000 in 32 years.

a.If the appropriate discount rate is 11 percent, what is the present value of thisinvestment?

b.Assume these investments sell for $806 in return for which you receive $2,000 in 32 years. What is the rate of return investors earn on this investment if they buy it for $806?

a.If the appropriate discount rate is 11 percent, the present value of this investment is $

nothing

. (Round to the nearestcent.)

b.The rate of return investors can earn on this investment if they buy it for $806 is

nothing

%. (Round to two decimalplaces.)