What happens to a future value if you increase the rate r ? What happens to a present value?
Answer to relevant QuestionsWhy would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?For each of the following, compute the presentvalue:In 2010, a gold Morgan dollar minted in 1895 sold for $125,000. For this to have been true, what rate of return did this coin return for the lucky numismatist?Investment X offers to pay you $5,200 per year for eight years, whereas Investment Y offers to pay you $7,300 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 ...Find the EAR in each of the followingcases:
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