An investment pays $4,600 every other year forever and the discount rate is 12 percent compounded...
An investment pays $4,600 every other year forever and the discount rate is 12 percent compounded daily. What is the value of the investment, if the first payment occurs one year from today?
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![Effective annual interest rate- (1+r/n)An-1 12.75% [ (1 + 12%/12)^12-1 ] n number of compoundings Value of the investment- S3](http://img.homeworklib.com/questions/5a885470-c302-11ea-903c-65e130b459a9.png?x-oss-process=image/resize,w_560)
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An investment pays $4,600 every other year
forever and the discount rate is 12 percent compounded...
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1. 18 pts] For this question, suppose the market interest rate is 4 percent, and round all answers to the nearest $1. a) What is the present discounted value of a perpetuity paying $100 per year, every year, with the first payment coming one year from today? b) What is the present discounted value of a perpetuity paying $100 per year, every year, with the first payment coming 6 years from today? c) What is the present discounted value of...
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