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Questions and Answers
Which one of the following options is the correct monthly discount rate expressed as a nominal annual rate?
Which one of the following options is the correct monthly discount rate expressed as a nominal annual rate?
- 8.04%
- 4.06%
- 6.88% (correct)
- 0.50%
What is the correct future value of the investment after 4.25 years, considering the monthly discount rate expressed as a nominal annual rate?
What is the correct future value of the investment after 4.25 years, considering the monthly discount rate expressed as a nominal annual rate?
- $175,000
- $186,250
- $178,663.58 (correct)
- $182,500
What is the correct period of time, in years, over which the future value of $182,500 is reduced to $178,663.58?
What is the correct period of time, in years, over which the future value of $182,500 is reduced to $178,663.58?
- 4 years
- 5 years
- 4.25 years (correct)
- 3.5 years
