Refer to the situation described in BE 58. Suppose the opportunity requires you to invest $13,200 today.
Question:
Refer to the situation described in BE 5–8. Suppose the opportunity requires you to invest $13,200 today. What is the interest rate you would earn on this investment?
Data from in BE 5-8
You have an investment opportunity that promises to pay you $16,000 in four years. You could earn a 6% annual return investing elsewhere. What is the maximum amount you would be willing to invest in this opportunity?
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