4. Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent, what is the present value of this amount if interest is compounded (a) annually? (b) quarterly? (c) continuously?
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Answer:
We have to take out simple or compound interest ?
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0
Answer:
a) 1000*10/100=100+1000=11000
b) 1000*(10*12/100)=1000*12=12000
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