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    Time Value of Money: What would Jon pay for cash stream; val

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    If Jon received an annual $75 payment indefinitely and the market rate of interest for these types of payments is 8%, what is the price Jon would pay for this stream?

    What is the end value of investing $5,000 for 14 months at an annual interest rate of 6% compounded monthly?

    If Cindy begins making quarterly investments of $300.00 starting at the end of this quarter, into an investment fund earning an average annual rate of 13.5% compounded quarterly, how much will her investment be worth in 15 yrs?

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    If Jon received an annual $75 payment indefinitely and the market rate of interest for these types of payments is 8%, what is the price Jon would pay for this stream?

    Price = $75/0.08 = $937.50

    What is the end value of investing $5,000 for ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the price Jon would pay for this stream.

    $2.19

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