Question
Peter will receive monthly payments of $10,000 for the next 6 years. The required return is 10 percent. Only need to input formula with numbers,
Peter will receive monthly payments of $10,000 for the next 6 years. The required return is 10 percent. Only need to input formula with numbers, no calculation needed.
a) What is the present value if payments are paid at the end of each month (i.e., first payment takes place in month 1)?
b) What is the present value if payments are paid at the beginning of each month (i.e., first payment takes place now)?
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Managerial Accounting
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