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This question relates to issues related to interest rates and rates of return. a . Compute the Present Value of the following cash flows using
This question relates to issues related to interest rates and rates of return.
a Compute the Present Value of the following cash flows using a continuously compounded annual interest rate of
tableYearCash Flows
b Suppose at time you had $ in the bank and years later you had $ Calculate the effective annual rate of return if the bank pays interest continuously.
c Suppose at time you had $ in the bank and years later you had $ Calculate the effective annual rate of return if the bank pays compound interest weekly. Please show the excel formulas used for each cell.
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