(Related to Checkpoint​ 5.6) ​ (Solving for i​) You are considering investing in a security that will pay you ​$1,000 in 25 years.   a.  If the appropriate discount rate is 11 percent​, what is the present value of this​ investment? b.  Assume these investments sell for ​$259 in return for which you receive ​$1,000 in 25 years. What is the rate of return investors earn on this investment if they buy it for ​$259​? a.  If the appropriate discount rate is 11 ​percent, the present value of this investment is ​$nothing. ​(Round to the nearest​ cent.)

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A:

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