Question

Certificate A pays $ 1000 in four months and S 1000 in eight months.
Certificate B pays $ 1000 in five months and $ 1000 in nine months. If the
rate of return required is 5.75 %. Determined the current value for each of
the Certificates Give an explanation for the lower value of certificate B

Answer 1

Answer:

its help uhh .

u can do by this formula....

Step-by-step explanation:

Year 1 - You earn interest on your Principal.

Year 2 - You earn interest on your (Principal + Interest of Year 1).

Year 3 - You earn interest on your (Principal + Interest of Year 1 + Interest of Year 2).

Compound interest is the basis of long-term growth of the stock market. It forms the basis of personal savings plans. Compound interest also affects inflation.