Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time. a) What is the discount factor assuming quarterly compounding at 7% interest rate? b) What is the present value? c) What happens to the present value if the payment was to occur in five years? d) What happens to the present value if the interest rate was 8% instead?
Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time. a) What is the discount factor assuming quarterly compounding at 7% interest rate? b) What is the present value? c) What happens to the present value if the payment was to occur in five years? d) What happens to the present value if the interest rate was 8% instead?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Financial Mathematics
Please answer all parts of the question
Suppose you will receive $50,000 in 10 years time.
a) What is the discount factor assuming quarterly compounding at 7% interest rate?
b) What is the present value?
c) What happens to the present value if the payment was to occur in five years?
d) What happens to the present value if the interest rate was 8% instead?
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