peter lynchpin wants to sell you an investment contract that pays equal $15,000 amounts at the end of each of the next 20 years. required:if you require an effective annual return of 7 percent on this investment, how much will you pay for the contract today?

Respuesta :

Interest contracts are enforceable legal agreements that safeguard an investor's financial investment in a company. These agreements also specify how the business is expected to return the investor's investment to them.

Explain about the Investment contract?

One of the simpler alternatives for investment agreements is a stock purchase agreement. In most cases, money is exchanged for stock, much like when buying stock on the stock market, but the documentation is more involved because the company is not publicly traded.

Interest contracts are enforceable legal agreements that safeguard an investor's financial investment in a company. These agreements also specify how the business is expected to return the investor's investment to them.

Although quarterly or yearly dividend payments are much more typical, some stocks and other investments pay their shareholders dividends on a monthly basis. Out of the roughly 3,000 public corporations that regularly pay dividends, just approximately 50 of them do so monthly.

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