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A. Suppose that you receive $500 at the end of each future month for 5 years the discount rate is 12% (APR). What is the present value?

B. Suppose that you deposit $500 at the end of each future month into an account paying 6% (APR). How much will have in your account at the end of the 5 years? What is the effective annual return (EAR) on this investment?

How much interest did you earn in part B?

Financial Management, Finance

  • Category:- Financial Management
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