Answered: Compute the nominal rate of intrrest at…

Compute the nominal rate of intrrest at which $980 deposited at the end of eaach month quaretly for 11 years and 9 months will amount to $34000.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

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Compute the nominal rate of intrrest at which $980 deposited at the end of eaach month quaretly for 11 years and 9 months will amount to $34000.00

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