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Assume annual compounding. How much do you need to invest today at 5% in order to produce $2500 in 4 years? What is the present
- Assume annual compounding.
- How much do you need to invest today at 5% in order to produce $2500 in 4 years?
- What is the present value of $2500 in 4 years if you discount the future cash at a rate of 5%?
- What is the price of an asset which pays $2500 in 4 years if the discount rate applied by the market is 5%?
- An asset pays $250,000 in three years. What is its value today assuming a 5% discount rate:
- annual compounding
- quarterly compounding
- In the question above, what is the percentage change in price were the maturity extended to four years, annual compounding?
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The Fiscal Impact Handbook
Authors: David Listokin
1st Edition
1138535672, 978-1138535671
