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Your Friend Wants You to Invest in His New Sporting

Question 73

Multiple Choice

Your friend wants you to invest in his new sporting goods store.For an initial investment,he will pay you $2,000 per year for the next twenty years.All payments are at the end of the year.You realize that this is a very risky investment and want a 20% return on each invested dollar.How much are you willing to loan him today for his new store?


A) $5,946
B) $9,739
C) $10,000
D) $17,027

Correct Answer:

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