You are considering investment that is going to pay $1,500 a month starting 20 years from today for 15 years. If you can earn 8 percent return on any investment, compounded monthly, how much at most are you willing to pay for this investment opportunity

Explanation:

1. First calculate the value of a constant annuity of $1,500 for 15 years at the 8% return.

The formula is:

Where:

Substitute and compute:

2. Discount to the present year.

You calculate the value of the annuity 20 years from now.

Then, you must discount that value at the same 8% rate to have the price today.

Here, the value in 20 years is $156,960.89, r = 0.08/12, and t = 240 (20 × 12).

answer is a

explanation:

answer; (a) calling people who have not shown interest in the product and asking them to buy it;