Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / A lump sum payment of 1000 is due at the end of 5 years The nominal interest rate is 10 se...

A lump sum payment of 1000 is due at the end of 5 years The nominal interest rate is 10 semiannual compounding Which of the following statements is CORRECT The present value of the 1000 would

A lump sum payment of $1,000 is due at the end of 5 years. The nominal interest rate is 10%, semiannual compounding. Which of the following statements is CORRECT? The present value of the $1,000 would be greater if interest were compounded monthly rather than semiannually. The PV if the $1,000 lump sum has a higher present value than the PV of a 5-year, $200 ordinary annuity. The periodic rate is greater than 5%. The present value would be greater if the lump sum were discounted back for more periods. The periodic interest rate is 5%.

 

Sep 07 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions