Most you should be willing to pay today for this investment

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Reference no: EM131298361

You have the chance to receive $700 at the end of 2 years. a) If you can earn 5% on similar risk investments, what is the most you should be willing to pay today for this investment (i.e., today's value)? b) If you pay $650 today would you be earning more or less than 5%/year? SHOW ALL work using the TVM buttons on the TI BAII Plus Calculator for full credit.

Reference no: EM131298361

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Most you should be willing to pay today for this investment : You have the chance to receive $700 at the end of 2 years. a) If you can earn 5% on similar risk investments, what is the most you should be willing to pay today for this investment (i.e., today's value)? b) If you pay $650 today would you be earning..

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