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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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