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How much should he pay today for the investment

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Reference no: EM133143162

Question - An investor is considering an investment that will pay $2,160 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually.

Required -

a. How much should he pay today for the investment?

b. How much should he pay if the investment returns are received at the beginning of each year?

Reference no: EM133143162

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