# Using a discount rate of 6% compounded monthly, calculate the present value of monthly payments of $325

## Question:

a. At the end of each month?

b. At the beginning of each month?

c. By what percentage does the answer to Part (b) exceed the answer to Part (a)? Discount Rate

Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...

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