a. If the one-year discount factor is 0.9183, what is the one-year interest rate? (Do not...

 

Transcribed Image Text:

a. If the one-year discount factor is 0.9183, what is the one-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. If the two-year interest rate is 8.9%, what is the two-year discount factor? (Do not round intermediate calculations. Round your answer to 4 decimal places.) c. Given these one- and two-year discount factors, calculate the two-year annuity factor. (Do not round intermediate calculations. Round your answer to 4 decimal places.) d. If the PV of $10 a year for three years is $25.36, what is the three-year annuity factor? (Do not round intermediate calculations. Round your answer to 4 decimal places.) e. From your answers to (c) and (d), calculate the three-year discount factor. (Do not round intermediate calculations. Round your answer to 4 decimal places.) a. Interest rate b. Discount factor c. Annuity factor d. Annuity factor e. Discount factor. 8.90 % 0.8432 1.7620 2.5360 a. If the one-year discount factor is 0.9183, what is the one-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. If the two-year interest rate is 8.9%, what is the two-year discount factor? (Do not round intermediate calculations. Round your answer to 4 decimal places.) c. Given these one- and two-year discount factors, calculate the two-year annuity factor. (Do not round intermediate calculations. Round your answer to 4 decimal places.) d. If the PV of $10 a year for three years is $25.36, what is the three-year annuity factor? (Do not round intermediate calculations. Round your answer to 4 decimal places.) e. From your answers to (c) and (d), calculate the three-year discount factor. (Do not round intermediate calculations. Round your answer to 4 decimal places.) a. Interest rate b. Discount factor c. Annuity factor d. Annuity factor e. Discount factor. 8.90 % 0.8432 1.7620 2.5360

Answer rating: 100% (QA)

To calculate the answers to the questions provided we will use the formulas for calculating interest ... View the full answer