Question: A. Use the same information for this question, and the next two (three in all) , Fidelity, will sell you an investment that will pay
A. Use the same information for this question, and the next two (three in all), Fidelity, will sell you an investment that will pay you $2,000 each year for the next 25 years. You will receive your first payment one year after you invest.
*If you want a return of 7%, How Much would you be willing to pay for this investment today?
B. Use the same information for this question, and the next one (three in all), Fidelity, will sell you an investment that will pay you $2,000 each year for the next 25 years. You will receive your first payment one year after you invest.
- If their price is actually $25,000 for the investment, what rate of return will you be getting if you should buy this investment today?
C. Using the same information for this question as in the previous two (three in all), Fidelity will sell you an investment that will pay you $2,000 each year for the next 25 years. You will receive your first payment one year after you invest.
- If you need a 7% return, and the investment will pay the $2,000 to you now, and to your heirs (children, grandchildren, any one else) forever; How Much should you be willing to pay for this investment today?
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