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You are offered an investment opportunity with the guarantee that your investment will double in 5 years. Given today's interest rate environment, does this seem

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You are offered an investment opportunity with the "guarantee" that your investment will double in 5 years. Given today's interest rate environment, does this seem reasonable? Why or why not? Numerically justify your answer. You plan on contributing 5 annual payments of $7,000 each to an investment account. Your first payment will be made 1 year from now, and the last payment will be made 5 years from now. That is, you will contribute $7,000 at time t=1, t=2, t=3, t=4, and t=5. Your contributions total $35,000. Assume 10% is an appropriate rate of return for such investments. a. What is this stream of cash flow worth today? That is, what is its present value? b. What is the future value of this stream of cash flow? c. Slight modification to your plan. Now let's say that you invest today (at time t=0) the present value you determined in part a, you do not make any other contributions to the account, and in 5 years (at time t=5) you receive the future value you determined in part b. If you did this, what annual rate of return would you earn

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