Your grandmother will be gifting you $190 at the end of each month for four years while you attend college. At a discount rate of 5.2 percent, what are these payments worth to you on the day you enter college? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Your grandmother will be gifting you $190 at the end of each month for four years while you attend college. At a discount rate of 5.2 percent, what are these payments worth to you on the day you enter college? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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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Your grandmother will be gifting you $190 at the end of each month for four years while you attend college. At a discount rate of 5.2 percent, what are these payments worth to you on the day you enter college?
(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Expert Solution
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In the Market, some factors are present such as inflation, market rates, and investment opportunities. Because of that if any person's money is received current time more beneficial than the money received in the future.
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