You are considering investing in a security that will pay you $$$$4$ comma $000$ in $35$ years.

a$.$If the appropriate discount rate is $8$ percent$,$ what is the present value of this$$ investment?

b$.$Assume these investments sell for $$$$1$ comma $216$ in return for which you receive $$$$4$ comma $000$ in $35$ years. What is the rate of return investors earn on this investment if they buy it for $$$$1$ comma $216?$

Question content area bottom

Part $1$

a$.$If the appropriate discount rate is $8$percent$,$ the present value of this investment is $$$