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Determine the interest rate if manage to buy

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Problem 1: Determines the present value of $2,500,000 to be paid after 25 years if the discount rate is 7%.

Problem 2: Suppose the U.S. Federal Reserve offers a bonus for $635.20 to 8 years of maturation. You won't have to issue payments until the maturation date, at which point you'll receive $950. Calculate the interest rate if you decide to buy it. Determine the interest rate if you manage to buy it at a price of $555.

Reference no: EM132833020

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