What interest rate must earn on investment

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Reference no: EM131247483

1. What interest rate (the nearest percent) must Charlie earn on a $452,000 investment today so that he will have $1,140,000 after 12 years?

a. 9%.

b.. 7%.

c. 8%.

d. 6%.

2. What would you pay for an investment that pays you $40,000 at the end of each year for the next ten years and then returns a maturity value of $600,000 after ten years? Assume that the relevant interest rate for this type of investment is 8%.

a. $268,404.

b. $546,317.

c. $277,916.

d. $289,872.

Reference no: EM131247483

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