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How much would have lost out discovered

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Question 1) You dug up from your backyard $5,000. How much would you have lost out if you had discovered it 20 years earlier when you first moved in and reinvested it in the stock market which has since grown an average of 15% per year?

Question 2) You will inherit $250,000 in 10 years. What is the maximum you can borrow against it today if the lender wants to get an annual return of 18% on his money (you only need to make one payment of $250,000 at the end of 10 years)?

Reference no: EM132492881

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