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You expect to receive $500 in five years from an investment. What is this investment worth today if the effective annual interest rate is 12%?

You expect to receive $500 in five years from an investment.

  1. What is this investment worth today if the effective annual interest rate is 12%? Is this right?
  2. A. Worth today- 500= pv (1+12%) 5
    1. Pv =500(1+12%)5

500/1.76234 = 283.71. Worth today = $238.71

2. What is it worth at a 12% APR compounded monthly? Help please!

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