Question
A payment of $2000 is due at time 15 years. Between times 0 to 6 years, the annual effective interest rate is 7%. Between times
A payment of $2000 is due at time 15 years. Between times 0 to 6 years, the annual effective interest rate is 7%. Between times 7 to 11 years, the annual effective discount rate is 7% and between times 11 to 15 years, the force of interest is 7%. Calculate the present value of the payment at time 0.
A. 689
B. 752
C. 732
D. 723
E. 701
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Guardians Of Finance
Authors: James R. Barth, Gerard Caprio, Ross Levine
1st Edition
0262526840, 978-0262526845
