Question: please help answer selected question (Related to Checkpoint 5.6) (Solving for ) You are considering investing in a socurily that will pay you $2,000 in
(Related to Checkpoint 5.6) (Solving for ) You are considering investing in a socurily that will pay you $2,000 in 34 years. a. If the appropriate discount rate is 12 percent, what is the present value of this investmen? b. Assume these imvestments sell for $942 in return for which you receive $2,000 in 34 years. What is the rate of retum investars earn on this investrnent if they buy it for $942 ? a. If the appropriate discount rate is 12 percent, the present value of this investment is $42.42. (Round to the noarest cent.) b. The rate of retum investors can earn on this investment if they buy it for $942 is X. (Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
