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1. What actions can investors take when the return they are expecting for any particular investment is different from the return they expect the investment to produce?

2. If the present value of an ordinary, 8-year annuity is $8,000 and interest rates are 10.0 percent, what’s the present value of the same annuity due?

3. A loan is offered with monthly payments and a 11.25 percent APR. What’s the loan’s effective annual rate (EAR)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92763828

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