Question
Your opportunity cost of funds can be expressed as 6% per year, compounded quarterly. Assume that the internship pays $8,000 per month (paid at the
Your opportunity cost of funds can be expressed as 6% per year, compounded quarterly. Assume that the internship pays $8,000 per month (paid at the end of the month.) What is the value today of the salary?
I know how to solve the problem but how do I translate the 6% per year or 1.5% per quarter to a monthly compounded rate?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
