a. The periodic interest rate is greater than 3%.
b. The periodic rate is less than 3%.
c. The present value would be greater if the lump sum were discounted back for more periods.
d. The present value of the $1,000 would be smaller if interest were compounded monthly rather than semiannually.
e. The PV of the $1,000 lump sum has a higher present value than the PV of a 3-year, $333.33 ordinary annuity.
Recently Asked Questions
- check on the file and download the
- Research a company that has been in the news due to ethical problems. Evaluate the ethical dilemma under two ethical frameworks. Analyze what part
- Review and reflect on what you learned in the past 8 weeks. What is the most practical and easily applied lesson you learned? What was the hardest to grasp?