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You have a savings account that earns 5% interest, compounded annually. A friend has offered you an investment opportunity. He says that if you invest
You have a savings account that earns 5% interest, compounded annually. A friend has offered you an investment opportunity. He says that if you invest in his new business, he will pay you $42,000 a year for the next 5 years. What is the maximum amount you would be willing to invest in your friend's business? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) Note: Use appropriate factor from
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