Offered an investment that will pay you

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1. You are being offered an investment that will pay you (and your heirs) $10,868 per year forever, starting 15 years from now. If your discount rate on this investment is 6.5 percent, how much would you be willing to pay for it today?

2. Today you deposit $8 thousand into an account paying 5% APR compounded daily. How much money will you have in the account 19 years from now?

Reference no: EM131027107

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