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
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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
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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