An investor is pitched that an investment in a real estate venture will provide returns...
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Accounting
An investor is pitched that an investment in a real estate venture will provide returns at the end of the next four years as follows: Year 1: $10,900 Year 2: $15,700 Year 3: $20,500 Year 4: $25,300 The investor wants to earn a 15 percent return compounded annually on their investment. a. How much should she pay today for the investment? b. Assuming that the investor wanted to earn an annual rate of 15 percent compounded monthly, how much would she pay for this investment? c. Why are these two amounts different?
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