For questions 3-4, consider the three sequences of incomes below ( P, Q, and R). Each sequence provides a stream of incomes for you, specified below, over the three years. P. Q R 2021 $520 $500 $480 $500 2022 $500 $500 2023 $480 $500 $520 3. Assume that the interest rate is 1%. If we rank the three sequences of payments according to their present value of sequence of payments over the three years, A. P>Q>R. B. R>Q> P. C. P>R> Q. D. R >P> Q. 4. Assume that the interest rate is 3%. If we rank the three sequences df payments according to their present value of sequence of payments over the three years, A. P>Q>R. B.R>Q>P. C. P>R>Q. D. R>P>Q.
For questions 3-4, consider the three sequences of incomes below ( P, Q, and R). Each sequence provides a stream of incomes for you, specified below, over the three years. P. Q R 2021 $520 $500 $480 $500 2022 $500 $500 2023 $480 $500 $520 3. Assume that the interest rate is 1%. If we rank the three sequences of payments according to their present value of sequence of payments over the three years, A. P>Q>R. B. R>Q> P. C. P>R> Q. D. R >P> Q. 4. Assume that the interest rate is 3%. If we rank the three sequences df payments according to their present value of sequence of payments over the three years, A. P>Q>R. B.R>Q>P. C. P>R>Q. D. R>P>Q.
Chapter16: Interest, Rent, And Profit
Section: Chapter Questions
Problem 1WNG
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