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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.
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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