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APR with Monthly Compounding Suppose that the interest rate is 5 % APR with monthly compounding. ( a ) What is the present value of
APR with Monthly Compounding
Suppose that the interest rate is APR with monthly compounding.
a What is the present value of $ that will be paid three years from now?
b What is the present value of a perpetuity that will pay $ every month and forever, starting a month
from now?
c What is the present value of an annuity that will pay $ every month for three years, starting a month
from now?
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