P=?$3,000$3,000$1,500$1,5004=10%2 = 8%iz = 10%4 = 15%I5 = 10%6 =8%13Years6Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year.Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year.Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year.The present equivalent value is $(Round to the nearest cent.) termine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i, varies as indicated.P=?$3,000$3,000$1,500$1,5004= 10%2 = 8%3 = 10%4= 15%is = 10%6 = 8%24Years6= Click the icon to view the interest and annuity table for discrete compounding when i= 8% ner vear

When future value is discounted with rate of interest over a period of time, it gives present value.…

Answered: The present equivalent value is S…

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The present equivalent value is S (Round to the nearest cent.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Interest Rate

When you deposit your money with the bank, the deposit earns you some extra money at the end of the specific period – something more than what you deposited. That amount of money that the bank pays you for keeping the money with the bank is the “interest” and the percentage at which the bank pays you for your amount is called the “interest rate”.

Question

P=?
$3,000
$3,000
$1,500
$1,500
4=10%
2 = 8%
iz = 10%
4 = 15%
I5 = 10%
6 =8%
1
3
Years
6
Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year.
Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year.
Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year.
The present equivalent value is $
(Round to the nearest cent.)

termine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i, varies as indicated.
P=?
$3,000
$3,000
$1,500
$1,500
4= 10%
2 = 8%
3 = 10%
4= 15%
is = 10%
6 = 8%
2
4
Years
6
= Click the icon to view the interest and annuity table for discrete compounding when i= 8% ner vear

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P=? $3,000 $3,000 $1,500 $1,500 4=10% 2 = 8% iz = 10% 4 = 15% I5 = 10% 6 =8% 1 3 Years 6 Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The present equivalent value is $ (Round to the nearest cent.)
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