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your money. How do you have to invest today? Topic 3: Discount interest rate exercise 1) Single-period case: You are considering a one-year investment.

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your money. How do you have to invest today? Topic 3: Discount interest rate exercise 1) Single-period case: You are considering a one-year investment. If you put up $1,250, you will get back $1,350. What rate is this investment paying? 2) Multiple periods: Mr. A estimates that he will need about $80,000 to send his children to college over the next eight years. He currently has about $ 35,000. If Mr. A deposit savings with an interest rate of 20 %/year, what will he do? At what percentage interest rate will Mr. A get the money he wants? 1 3) You want to retire within 50 years. If you deposit $ 10,000 today. What rate of return will help you become a millionaire ($1,000,000)? 4/ You have an investment that will double your money in 10 years. What rate of profit will you get? Know that you now have $1,000. Tonic 4. Te

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