How much should you pay for such an investment

Reference no: EM132058387

Question: A profitable business venture promises to pay investors a monthly cash return of $1,900 for the next seven years. Having studies other investment alternatives, you believe that a reasonable return on your investment should be 12 percent compounded monthly.

a) How much should you pay for such an investment?

b) What will be the total sum of cash you will receive over the next seven years?

Reference no: EM132058387

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