A What Is The Present Value Of 40 Earned 2 Years From Now If Compounding Was Sem

a) What is the present value of $40 earned 2-years from now if compounding was semi-annual and the interest rate is annually 3%?

b) A “black box” just paid $20, which is expected to grow by 3% when the interest rate is 7% forever, what is the present value of this “black box”?

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