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QUESTION

You recently invested $12,000 of your savings in a security issued by a large company. The security agreement pays you 7 percent per year and has a...

You recently invested $12,000 of your savings in a security issued by a large company. The security agreement pays you 7 percent per year and has a maturity two years from the day you purchased it. What is the total cash flow you expect to receive from this investment, separated into the return on your investment and the return of your investment?

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