(Answered) Market for sports memorabilia

Finance

Problem: You are considering buying a baseball signed by all of the 1927 New York Yankees. Knowing something about the market for sports memorabilia, you are convinced that in exactly one year's time, you will be able to sell the ball for $2,500.

Required:

Question 1: If you don't buy the ball, you'll simply put your money in a savings account for the year at 3% interest.

Question 2: What is the most you should pay for the ball today? Round your answer to the nearest dollar. Show your calculations

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