Question
2 A lump sum payment of $1,000 is due at the end of 5 years. The nominal interest rate is 10%, semiannual compounding. True or
2 A lump sum payment of $1,000 is due at the end of 5 years. The nominal interest rate is 10%, semiannual compounding.
True or false?
a. The present value of the $1,000 would be greater if interest were compounded monthly rather than semiannually.
b. The periodic rate is greater than 5%.
c. The periodic interest rate is 5%.
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick
3rd Edition
0470497521, 9780470497524
