Calculating present value

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10 (calculating the present value of an annuity) How much would you be willing to pay today for an investment that pays $800 a year at the end of the next 6 years? (Your required rate of return is 5% a year.)

7. (calculating present value) What's the present value of $1,000 to be received in 8 years? (Your required rate of return is 7% a year.)

8. (calculating the rate of return) A friend promises to pay you $600 two years from now if you loan him $500 today. What interest rate is your friend offering you?

Reference no: EM13539009

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