QUESTION 11 Suppose you need to payoff a student loan of $15,000. You are allowed to pay $10,000 today and $10,000 at the end of ten years. If the nominal continuously compounded interest rate is 10%, then the amount you are paying is effectively more than $15,000 O True O False
QUESTION 11 Suppose you need to payoff a student loan of $15,000. You are allowed to pay $10,000 today and $10,000 at the end of ten years. If the nominal continuously compounded interest rate is 10%, then the amount you are paying is effectively more than $15,000 O True O False
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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Transcribed Image Text:QUESTION 11
Suppose you need to payoff a student loan of $15,000. You are allowed to pay $10,000 today
and $10,000 at the end of ten years. If the nominal continuously compounded interest rate is
10%, then the amount you are paying is effectively more than $15,000
O True
False
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