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At an annual effective interest rate i,i>0, the following are equal: (i) The present value of 12,000 at the end 12 years (ii) The sum
At an annual effective interest rate i,i>0, the following are equal: (i) The present value of 12,000 at the end 12 years (ii) The sum of the present values of 3,000 at the end of year t and 63,000 at the end of year 2t (iii) 8,000 immediately Calculate the present value of a payment of 6,000 at the end of year (t+1). A 1,934 B 2,000 C 2,210 D 2,900 E 3,867 Sarah will receive $10,000 in 3 years and $15,000 in 5 years. The compound discount rate is 6.5% per year. Calculate the present value of today of the payments. A 10,719 B 12,357 C 18,893 D 19,227 E 19,461
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