Buying an asset that will generate income
Question:
Should you buy an asset that will generate income of $1,200 at the end of each year for 8 years? The price of the asset is $6,200 and the annual interest rate is 10%.
Now Priced at $20 (50% Discount)
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If the stated rate of interest is 12% and it is compounded monthly, what is the effective annual interest rate?
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Should you buy an asset that will generate income of $1,200 at the end of each year for 8 years?
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