10. Find the present value of $13000 due in three years and 7 months if money is worth 12% p.a. compounded monthly. 11. How long does it take for money to double at 9.5% compounded monthly?

Q: Consider a position of two purchased calls (AT&T, three months, K30) and one written put (AT&T,…

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Q: How is ARR calculated?

A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…

Q: Describe the functions and powers of ASIC

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Q: the difference between a W-4 form and W-2 form.

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Q: am. 124.

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Q: What would be the equasion for solving this

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Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: Is DDM and CAPM suppose to be the same numbe

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Q: Explain rebalance

A: Rebalancing is the strategy for realigning portfolio weightings. Rebalancing incorporates buying or…

Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

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A: The term ‘Alpha’ refers to the active return on investment. In other words, the excess return from…

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A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Why is this formula very important F = P( I + i)?

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.