Events appears to settle down to constant value

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1. What is the most you would be willing to pay for a investment that will pay you $820 in one year, $417 in two years, and $921 in three years if your required rate of return for this type of investment is 11.00%?

2. You wish to buy a $20,500 car. The dealer offers you a 5-year loan with a 9 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

3. After many observations the relative frequency = # of events of interest / total # events appears to settle down to a constant value. This is an example of the; Law of Averages or Law of Large Numbers.

Reference no: EM131973562

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