Question
A friend says that the present value of $500 paid at the beginning of every month is worth more than $500 paid at the end
A friend says that the present value of $500 paid at the beginning of every month is worth more than $500 paid at the end of every month if the annuity is for 10 years and discount rate is 4% compounded monthly. What is the better value?
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
