Determine the maximum would be willing to pay

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Problem 1: Suppose you deposit $3,000 into your bank account at the end of each of the next 9 years. If the interest rate is 11%, how much would you have accumulated at the end of 9 years?

Problem 2: An investment promises to pay you $6,000 per year forever with the first payment today. If alternative investments of similar risk earn 3.64% per year, determine the maximum you would be willing to pay for this investment.

Reference no: EM132902517

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