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You are considering two investments: a) Investment A promises to pay $125 per month for 24 months. You are willing to pay $2736 for this

You are considering two investments: a) Investment A promises to pay $125 per month for 24 months. You are willing to pay $2736 for this investment. Find the e#ective rate for the investment. b) Investment B has the same e#ective rate as Investment A, but it pays $1200 per year forever. How much would you be willing to pay for Investment B? Please show your work.

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