Peter lynchpin wants to sell you an investment contract, Finance Basics

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Peter lynchpin wants to sell you an investment contract

Question: Peter Lynchpin wants to sell you an investment contract that pays equal $12, 600 amounts at the end of each of the next 18 years. If you require an effective annual return of 7 percent on this investment, how much will you pay for the contract today?

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Finance Basics: Peter lynchpin wants to sell you an investment contract

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Finance Basics: Peter lynchpin wants to sell you an investment contract

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