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The amount of interest carmed on A for one year is $336, while the equivalent amount of discount is $300. Find A.

The amount of interest carmed on A for one year is $336, while the equivalent amount of discount is $300. Find A.

Essentials Of Investments
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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occur at the end of 20, 40, and 60 years. 1.7 The effective rate of discount 20. a) Find ds if the rate of simple interest is 10%. b) Find ds if the rate of simple discount is 10%. 21. Find the effective rate of discount at which a payment of $200 immediately and $300 one year from today will accumulate to $600 two years from today. 22 The amount of interest carned on A for one year is $336, while the cquivalent amount of discount is $300. Find A. 23. Find the present value of $5000 to be paid at the end of 25 months at a rate of discount of 8% convertible quarterly: a) Assuming compound discount throughout. b) Assuming simple discount during the final fractional period. 24. Show that (i-d)° 1-v 25. If i andd are equivalent rates of simple interest and simple discount over 4 periods, show that i-d = idt. 1.8 Nominal rates of interest and discount
Transcribed Image Text:occur at the end of 20, 40, and 60 years. 1.7 The effective rate of discount 20. a) Find ds if the rate of simple interest is 10%. b) Find ds if the rate of simple discount is 10%. 21. Find the effective rate of discount at which a payment of $200 immediately and $300 one year from today will accumulate to $600 two years from today. 22 The amount of interest carned on A for one year is $336, while the cquivalent amount of discount is $300. Find A. 23. Find the present value of $5000 to be paid at the end of 25 months at a rate of discount of 8% convertible quarterly: a) Assuming compound discount throughout. b) Assuming simple discount during the final fractional period. 24. Show that (i-d)° 1-v 25. If i andd are equivalent rates of simple interest and simple discount over 4 periods, show that i-d = idt. 1.8 Nominal rates of interest and discount
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