Question
This exercise is the same as (What is the present value of 15 payments of $200 each received every 18 months at a discount rate
This exercise is the same as (What is the present value of 15 payments of $200 each received every 18 months at a discount rate of 9%?) where we used this formula: Present Value = P * [1 - (1+r)^-n] / r. Why can't we use it here as well?
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lets break down the problem step by step and calculate the present value of 15 payments of 200 ...
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
