Question
Dally Gravita has received a settlement from an insurance company that will pay her $23,500 annually for 12 years. Current interest rate are 8 percent,
Dally Gravita has received a settlement from an insurance company that will pay her $23,500 annually for 12 years. Current interest rate are 8 percent, compounded semiannually.
(a) What is the effective annual interest rate? Round to two decimal places. Give your answer as a percentage. No other symbols
(b) How much is the present worth of Sally's settlement? Use BUSINESS CALCULATOR. Give whole number. No symbols.
(c) How much is the present worth of Sally's settlement if payments are made at the beginning of each year? Use BUSINESS CALCULATOR. Give whole number. No symbols.
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International Finance Discussion Papers A Framework For Economic Forecasting
Authors: United States Federal Reserve Board, Neil R. Ericsson, Jaime Marquez
1st Edition
1288733585, 9781288733583
