1) Assume that Alessi Balsamic Vinegar sells for $3.25 for a 4 year old bottle and that a 20 year old bottle sells for $12.50. Calculate the annual rate of return that the company is expecting to earn. Show your work. Do not use a calculator with a built-in function for calculating rate of return. You can use a calculator for natural logarithms and Euler’s constant. Hint: use natural logarithms.
2) Calculate the levelized payment for a $1 annuity lasting 50 years growing at 4% and discounted at 6%. Show your work