Find the present value of a series of investment of $1 at the end of each year for 25 years with effective
interest rate of 13.5% p.a.
=P[1−(1+r)−nr]=P[\frac{1 - (1 +r) ^{-n}} {r}]=P[r1−(1+r)−n]
=$1[1−(1+0.00135)−250.00135]=\$1[\frac{1 - (1 +0.00135) ^{-25}} {0.00135}]=$1[0.001351−(1+0.00135)−25]
=$1[1−(1.00135)−250.00135]=\$1 [\frac{1 - (1.00135) ^{-25}} {0.00135 }]=$1[0.001351−(1.00135)−25]
=$1[1−(1−0.967)0.00135]=\$1 [\frac{1 - (1 - 0.967)} {0.00135 }]=$1[0.001351−(1−0.967)]
=$1(24.44)=\$1 (24.44)=$1(24.44)
Present Value =$24.44\$24.44$24.44
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Dear sheldon, please use the panel for submitting a new question.
An investment is discounted for 28 days at a simple rate of discount of 4.5% per annum. Calculate the annual effective rate of interest.
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Dear sheldon, please use the panel for submitting a new question.
An investment is discounted for 28 days at a simple rate of discount of 4.5% per annum. Calculate the annual effective rate of interest.