Heather puts 8000 on an investment that offers 5 interest


Heather puts $8000 on an investment that offers 5% interest per year. The interest is due in 5 years. Annual inflation is expected to be 4% over the next 5 years. Heather’s actual MARR is 7.5%. What is the present worth of the interest on investment?

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Financial Management: Heather puts 8000 on an investment that offers 5 interest
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