(Solving for

i)

You are considering investing in a security that will pay you

$3,000

in

33

years.

a.If the appropriate discount rate is

12

percent,

what is the present value of this investment?

b.Assume these investments sell for

$1,142

in return for which you receive

$3,000

in

33

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

$1,142?

If the appropriate discount rate is

12

percent, the present value of this investment is

$enter your response here.

(Round to the nearest cent.)