(Solving for

i)

You are considering investing in a security that will pay you

$4 comma 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

$1 comma 498

in return for which you receive

$4 comma 000

in

33

years. What is the rate of return investors earn on this investment if they buy it for

$1 comma 498

?

Question content area bottom

Part 1

a.If the appropriate discount rate is

10

percent, the present value of this investment is

$.

(Round to the nearest cent.)