a. PV =FV/(1+r)^n =700/(1+15%/2)^16 =220.07
b. PV =FV/(1+r)^n =700/(1+15%/4)^32 =215.52
c. PV =FV/(1+r)^n =700/(1+15%/12)^12 =603.06
d. Higher the rate, higher the maturity lower is the PV.
a. EAR of A =4%
EAR of B =(1+3.25%/365)^365-1 =3.30%
Option I is correct option
b. Option III is correct option.
Find the present value of $700 due in the future under each of these conditions: a....
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