Question
You are considering investing in a security that will pay you $4,000 in 33 years. a.If the appropriate discount rate is 8 percent, what is
You are considering investing in a security that will pay you $4,000 in 33 years.
a.If the appropriate discount rate is 8 percent, what is the present value of this investment?
b.Assume these investments sell for $1,726 in return for which you receive $4,000 in 33 years. What is the rate of return investors earn on this investment if they buy it for $1,726?
A. If the appropriate discount rate is 8 percent, the present value of this investment is
$315.55315.55.
b.The rate of return investors can earn on this investment if they buy it for $1,726 is ?????
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