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Anna receives $1,000 on the first of each month. Josh receives $1,000 on the last day of each month. Both Anna and Josh will receive payments for next five years. At a 8 percent annual discount rate, what is the difference in the present value of these two sets of payments? O $359.08 O $306.45 O $289.03 O $328.79

Anna receives $1,000 on the first of each month. Josh receives $1,000 on the last day of each month. Both Anna and Josh will receive payments for next five years. At a 8 percent annual discount rate, what is the difference in the present value of these two sets of payments? O $359.08 O $306.45 O $289.03 O $328.79

Essentials Of Investments
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
Problem 1PS
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Anna receives $1,000 on the first of each month. Josh receives $1,000 on the last day of each month. Both Anna and Josh will receive payments for next five years. At a 8 percent annual discount rate, what is the difference in the present value of these two sets of payments? O $359.08 O $306.45 O $289.03 O $328.79
Transcribed Image Text:Anna receives $1,000 on the first of each month. Josh receives $1,000 on the last day of each month. Both Anna and Josh will receive payments for next five years. At a 8 percent annual discount rate, what is the difference in the present value of these two sets of payments? O $359.08 O $306.45 O $289.03 O $328.79
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