Given the following two sets of cash flows: Option A: $25,360.32 in 5 years plus $Y...
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Given the following two sets of cash flows: Option A: $25,360.32 in 5 years plus $Y in 10 years time. Option B: $34,048.49 8 years from today. The nominal rate ¡(52) = 2.481% makes the present value of these two options the same. What is the value of Y? Given the following two sets of cash flows: Option A: $25,360.32 in 5 years plus $Y in 10 years time. Option B: $34,048.49 8 years from today. The nominal rate ¡(52) = 2.481% makes the present value of these two options the same. What is the value of Y?
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Answer rating: 100% (QA)
We may use the present value formula to solve for Y as follow... View the full answer
Related Book For
Introduction To Mathematical Statistics And Its Applications
ISBN: 9780321693945
5th Edition
Authors: Richard J. Larsen, Morris L. Marx
Posted Date:
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