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, You are considering investing in a security that will pay you $5,000 in 26 years. a. If the appropriate discount rate is 10
, You are considering investing in a security that will pay you $5,000 in 26 years. a. If the appropriate discount rate is 10 percent, what is the present value of this investment? b. Assume these investments sell for $1,640 in return for which you receive $5,000 in 26 years. What is the rate of return investors earn on this investment if they buy it for $1,640? a. If the appropriate discount rate is 10 percent, the present value of this investment is $ b. The rate of return investors can earn on this investment if they buy it for $1,640 is (Round to the nearest cent.) %. (Round to two decimal places.)
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