1.A $1000 investment today will pay you $300 three months from now, $500 six months from now...

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1.A $1000 investment today will pay you $300 three months from now, $500 six months from now and $800 in one year.If the interest rate is 8% APR (compounded quarterly), what is the present value of these cash flows?

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Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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Posted Date: May 11, 2024 03:12 AM

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1.A $1000 investment today will pay you $300 three months from now, $500 six months from now...

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Since the cash flows occur at different points in time we should discount them individually accordin... View the full answer

Microeconomics

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