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You are considering investing in a security that will pay you $5,000 in 25 years. a. If the appropriate discount rate is 12 percent, what

You are considering investing in a security that will pay you $5,000 in 25 years.

a. If the appropriate discount rate is 12 percent, what is the present value of this investment?

b. Assume these investments sell for $1,632 in return for which you receive $5,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for $1632?

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