Solutions to Chapter 1
Look up the price of gold and compare it to $1500/6 = $250 per ounce. ... the FV of an annuity due equals the FV of an ordinary annuity times (1 + r). Because each cash flow comes at the beginning of the period, it has an extra period to earn interest compared to an ordinary annuity. ... Year 1 Year 2 Year 3 DIV $1.04 $1.0816 $1.1249 Selling ... ................
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