An investment offers $4,350 per year for 15 years, with the first payment occurring one year from now. a. if the required return is 6 percent, what is the value of the investment? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. what would the value be if the payments occurred for 40 years? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. what would the value be if the payments occurred for 75 years? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) d. what would the value be if the payments occurred forever? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Instructions are listed below

Explanation:

Giving the following information:

For this exercise, we need to find the present value of an investment using the following formula:

PV= ∑[Ct/(1+i)^n]

Ct= annual payment

i= 0.06

1) n= 15

PV= $42,248.29

2) n= 40

PV= $65,451.39

3) n= 75

PV= 71,582.94

4) For a perpetual annuity we need to use the following formula:

PV= Ct/i= 4350/0.06= $72,500

answer; bootstrapping is your answer;

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.