ment stream consists of three payments:$1000 due today, $1500 due 70, days from A pay today,...

Question

Question

Answer 1

Answer #1

Ans: 1)

Present Value factor = 1/(1+(Interest Rate*Number of days/Number of Days in a Year)^Number of years)

Equivalent amount to be paid in 60 Days from Today = $4,449.84 ( 1+ (0.035*60/360))

= $4,449.84*1.01

= $4,475.80

2)

Equivalent amount to be paid in 1 month from Today = $3,104.35 ( 1+ (0.045*1/12))

= $3,104.35*1.00375

= $3,115.99

3) Stream 1

Stream 2

Answer 2

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