you brought an investment that pays 2000 each year for 10 years, starting in year 10. (i) if the interest rate for investment of this type was 8%. how much would it have cost you? (ii) five years have passed, the rate required by investor is now 10%, what is the investment now worth?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
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you brought an investment that pays 2000 each year for 10 years, starting in year 10. (i) if the interest rate for investment of this type was 8%. how much would it have cost you? (ii) five years have passed, the rate required by investor is now 10%, what is the investment now worth? 

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