ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 13, Problem 8P
To determine

The present value of each of the following future payments.

Introduction:

The future value of saving can be calculated by the formula:

FutureValue=Presentvalue(1+Interestrate)T

Presentvalue=dividendreceiveddiscountrate

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1. How is the future related to the present value of a single sum?2. How is the present value of a single sum related to the present value of an annuity? 3. Why does money have a time value?4. If, as an investor, you had a choice of daily, monthly, or quarterly compounding. which would you choose? Why?   Hello, it's me, again.? Thank you in advance :))
If the interest rate is 7.0%, what is the present value of a perpetuity paying $210 per year? (A perpetuity is a bond that makes payments forever.) Round to the nearest dollar. Do not use dollar signs or commas in your answer. Example: if the answer is $1,234.56, then write "1235"
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