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(Solving for i) You are considering investing in a security that will pay you $2,000 in 25 years.a.If the appropriate discount rate is 9 percent,

(Solving for

i)

You are considering investing in a security that will pay you

$2,000

in

25

years.a.If the appropriate discount rate is

9

percent,

what is the present value of this investment?b.Assume these investments sell for

$761

in return for which you receive

$2,000

in

25

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

$761?

Question content area bottom

Part 1

a.If the appropriate discount rate is

9

percent, the present value of this investment is

$enter your response here.

(Round to the nearest cent.

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