7.9 Bauer Bookstore sells books before they are published. T…

7.9 Bauer Bookstore sells books before they are published. Today, they offered the book Journeys in Finance for $14.00, but the book will not be published for another two years. Upon publishing, the price of the book will be $25.00. What is the discount rate Bauer Bookstore is offering its customers for this book?

9.7 You hire Jen for a three-year term. She has no retiremen…

9.7 You hire Jen for a three-year term. She has no retirement plan, so you agree to invest money immediately to allow her a stream of three payments beginning one year after her employment term ends. Draw a timeline! The money you invest for the full six years of this arrangement (three years of employment and three years of withdrawals) always earns 6% compounded annually. When Susan receives her third and last payment, the fund will be depleted and equal zero. The three payments she will receive are as follows: End of year 4: $25,000 End of year 5: $30,000 End of year 6: $37,000 Therefore, your goal is to have enough money in this account at the end of Susan’s three-year employment term to assure her of receiving these payments. How much money must you invest today to accomplish this strategy?