Question
A firm will have to pay a legal settlement of $1,500,000 in 2 years. What is the present value of this obligation today if the
A firm will have to pay a legal settlement of $1,500,000 in 2 years. What is the present value of this obligation today if the firm can earn 6% APR compounded annually on their deposits?
How many years will it take for a single deposit of $100 to triple in value at an effective annual rate of 5%?
Which of the following rates has the greatest effective annual return (EAR)?
Check the one rate with the highest EAR:
Group of answer choices
4% APR compounded monthly
4.2% APR compounded annually
4% APR compounded daily
What is the present value of a regular perpetuity starting with a $500 cash flow next month, growing at a rate of 3.72% APR compounded monthly, if the discount rate is 9% APR compounded monthly?
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