Find the equivalent of present worth (t = 0) of a uniform series of $4550 for 8 years, if the payment is made every 12 months, starting 6 years from now. Assume the interest rate is 12% per year, compound continuously. Which option below can be used to solve the problem? P = $4550 (P/A, 12%, 8) (P/F, 12%, 5) P= $4550 (P/A, 12%, 8) P = $4550 (P/F, 12%, 5) P = $4550 (P/A, 12%, 8) (P/F, 12%, 6)

Find the equivalent of present worth (t = 0) of a uniform series of $4550 for 8 years, if the payment is made every 12 months, starting 6 years from now. Assume the interest rate is 12% per year, compound continuously. Which option below can be used to solve the problem? P = $4550 (P/A, 12%, 8) (P/F, 12%, 5) P= $4550 (P/A, 12%, 8) P = $4550 (P/F, 12%, 5) P = $4550 (P/A, 12%, 8) (P/F, 12%, 6)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $25,937.42 $27,070.41 O $10,000
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