Using a discount rate of 6% compounded monthly, calculate the present value of monthly payments of...
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Using a discount rate of 6% compounded monthly, calculate the present value of monthly payments of $325 for 7 years if the payments are made: a. At the end of each month? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PV b. At the beginning of each month? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PV(due) 2$ c. By what percentage does the answer to Part (b) exceed the answer to Part (a)? (Do not round intermediate calculations and round your final answer to 1 decimal place.) Percent difference Using a discount rate of 6% compounded monthly, calculate the present value of monthly payments of $325 for 7 years if the payments are made: a. At the end of each month? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PV b. At the beginning of each month? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PV(due) 2$ c. By what percentage does the answer to Part (b) exceed the answer to Part (a)? (Do not round intermediate calculations and round your final answer to 1 decimal place.) Percent difference
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Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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