please respond to both questions, don't forget to round QUESTION 1 An...

90.2K

Verified Solution

Question

Finance

please respond to both questions, don't forget to round image
QUESTION 1 An investment pays you $3.90 every week, with the first payment occurring in one week. You expect these payments to occur forever. If your cost of capital is 10.4% APR with weekly compounding, what is the maximum amount you should be willing to pay for this investment? Your final answer must be rounded to the nearest dollar and entered without the dollar sign. QUESTION 2 You expect an investment to pay $100 in one year and for this payment to grow every year by 6% APR with monthly compounding forever. How much will this investment pay in year 3? Your final answer must be rounded to the nearest dollar and entered without the dollar sign

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students