Question: Answer in 2 decimal places, answer both questions please. Thanks. What is the most that you would pay for an investment that promises to pay

Answer in 2 decimal places, answer both questions please.

Thanks.

What is the most that you would pay for an investment that promises to pay $18,397 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 15.68%. Question 5 2 pts A loan has a stated annual rate of 14.24%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest? Please be sure to answer as a percentage

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