1 - San Francisco State University
c. Bank 5; 6.0% with daily (365-day) compounding. d. Bank 4; 6.0% with quarterly compounding. 17. A lump sum payment of $1,200 is due at the end of 6 years. The nominal interest rate is 8%, semiannual compounding. Which of the following statements is CORRECT? a. The PV of the $1,200 lump sum is smaller than $1200. b. The periodic interest rate ... ................
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