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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 5% APR with monthly compounding.
(a) What is the present value of $100 that will be paid three years from now?
(b) What is the present value of a perpetuity that will pay $10 every month and forever, starting a month
from now?
(c) What is the present value of an annuity that will pay $10 every month for three years, starting a month
from now?
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