What return is investment offering

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A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $12,800 each, with the first payment occurring today, your child's 12th birthday.

Beginning on your child's 18th birthday, the plan will provide $32,000 per year for four years.

What return is this investment offering? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Given an interest rate of 5.3 percent per year, what is the value at date t = 7 of a perpetual stream of $3,700 payments that begins at date t = 15? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132795985

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