Calculate the present value at t=0 (now) of the following cash flows: D. $100 every 3 years forever, with the first payment at t=3 (t counts years), where the effective annual rate is .05 (i.e. 5%) E. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .05 (i.e., 5%). F. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .10 (i.e., 10%).
Calculate the present value at t=0 (now) of the following cash flows: D. $100 every 3 years forever, with the first payment at t=3 (t counts years), where the effective annual rate is .05 (i.e. 5%) E. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .05 (i.e., 5%). F. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the effective annual rate is .10 (i.e., 10%).
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Calculate the present value at t=0 (now) of the following cash flows:
D. $100 every 3 years forever, with the first payment at t=3 (t counts years), where the effective annual rate is .05 (i.e. 5%)
E. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the
effective annual rate is .05 (i.e., 5%).
F. $1000 every 3 years forever, with the first payment at t = 3 (t counts years), where the
effective annual rate is .10 (i.e., 10%).
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