Lecture Notes on Time Value of Money
The interest rate s 8.0%, compounded monthly. The next payment is due in 15 days. What is the balance of the loan? [Hint: Assume 30 days per month.] a $62,993 b $76,949 c $62,576 d $82,228 e $84,825 15. The present value interest factor of an annual ordinary annuity for 3 years at 8% equals: a. 1/(1.08)3. b. 1/(1.24) ................
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