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What is the present value of $10,000 received: a. Twelve years from today when the interest rate is 4% per year? b. Twenty years from
What is the present value of $10,000 received:
a. Twelve years from today when the interest rate is 4% per year?
b. Twenty years from today when the interest rate is 8% per year?
c. Six years from today when the interest rate is 2% per year?
Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for a period length of:
a. Six months.
b. One year.
c. One month
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