Time value of money

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Time Value of Money

Darlene needs an investment that will generate income of $300 at the end of year 1, $300 at the end of year 2, $500 at the end of year 3, $600 at the end of year 4, and $1,200 at the end of year 5. How much should Darlene pay for this investment if she can earn 6 percent on his investment? How does your answer change if she can only obtain an interest rate of 2.45%?

Reference no: EM131893876

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