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Use present value tables. BEG.7 (LO 2), C For each of the following cases, indicate (a) what interest rate columns and (b) what number of
Use present value tables. BEG.7 (LO 2), C For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the discount rate. 1. In Table 3 (present value of 1): Annual Number of Years Discounts per Rate Involved Year Case A 12% 7 Annually Case B 8% Annually Case C 10% 8 Semiannually 11 2. In Table 4. (present value of an annuity of 1): Annual Rate Number of Years Involved Number of Payments Involved Case A Frequency of Payments Annually Annually Semiannually 20 10% 10% 20 Case B 7 7 Case C 6% 5 10 Use present value tables. BEG.7 (LO 2), C For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the discount rate. 1. In Table 3 (present value of 1): Annual Number of Years Discounts per Rate Involved Year Case A 12% 7 Annually Case B 8% Annually Case C 10% 8 Semiannually 11 2. In Table 4. (present value of an annuity of 1): Annual Rate Number of Years Involved Number of Payments Involved Case A Frequency of Payments Annually Annually Semiannually 20 10% 10% 20 Case B 7 7 Case C 6% 5 10
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