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In this question, annual interest rates will be depicted as 0.08 for 8%, therefore when dividing an annual interest rate by 12, to get the
In this question, annual interest rates will be depicted as 0.08 for 8%, therefore when dividing an annual interest rate by 12, to get the per period rate, take it to four significant digits, e.g. 0.08/12 = 0.0067.
In this question, annual interest rates will be depicted as 0.08 for 8%, therefore when dividing an annual interest rate by 12, to get the per period rate, take it to four significant digits, e.g. 0.08/12 = 0.0067. 1. With interest rates at 0.0360, a person expects to earn $111087 after one year with a $86996 investment. What is the profit of the investment at the end of the year? 2. A one year $100,000 T-Bill will sell for how much when issued when rates are 0.03607 3. An investment of $14261 will bring cash flows of $2683, $8554, and $10394 at the end of the first three years, If interest rates are 0.0360, what is the net present value of the investment? 4. What is the value of a perpetuity that pays $1,000 per year when interest rates are 0.0360Step by Step Solution
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