You invest in a scheme that will pay you $4000 at the end of each of...
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You invest in a scheme that will pay you $4000 at the end of each of the next six years, plus a lump sum payment of $40,000 when the six years are up. If this scheme boasts a 15% APR (annual percentage rate), how much must you invest in this opportunity today to achieve the 15% APR? Show a cash flow diagram. (no monthly compounding) Show your work and final answer(s). You invest in a scheme that will pay you $4000 at the end of each of the next six years, plus a lump sum payment of $40,000 when the six years are up. If this scheme boasts a 15% APR (annual percentage rate), how much must you invest in this opportunity today to achieve the 15% APR? Show a cash flow diagram. (no monthly compounding) Show your work and final answer(s).
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