(Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay you $4,000 in 32 years. a. If the appropriate discount rate is 8 percent, what is the present value of this investment? b. Assume these investments sell for $1,515 in return for which you receive $4,000 in 32 years. What is the rate of return investors earn on this investment if they buy it for $1,515? a. If the appropriate discount rate is 8 percent, the present value of this investment is $. (Round to the nearest cent.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2:34
(Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay you $4,000 in 32
years.
LTE 2.1 4G
a. If the appropriate discount rate is 8 percent, what is the present value of this investment?
b. Assume these investments sell for $1,515 in return for which you receive $4,000 in 32 years. What is the rate of
return investors earn on this investment if they buy it for $1,515?
|||
71%
a. If the appropriate discount rate is 8 percent, the present value of this investment is $ . (Round to the nearest
cent.)
=
O
Transcribed Image Text:2:34 (Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay you $4,000 in 32 years. LTE 2.1 4G a. If the appropriate discount rate is 8 percent, what is the present value of this investment? b. Assume these investments sell for $1,515 in return for which you receive $4,000 in 32 years. What is the rate of return investors earn on this investment if they buy it for $1,515? ||| 71% a. If the appropriate discount rate is 8 percent, the present value of this investment is $ . (Round to the nearest cent.) = O
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