An investor is pitched that an investment in a real estate venture will provide returns at the end of the next four year
Posted: Fri Jul 01, 2022 7:47 am
An investor is pitched that an investment in a real estateventure willprovide 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: $25,300The investor wants to earn a 15 percent return compounded annuallyontheir investment.a. How much should she pay today for the investment? b. Assuming that the investor wanted to earn an annual rate of15percent compounded monthly, how much would she pay for thisinvestment? c. Why are these two amounts different?