gi u ow so e e e w Canvas pSL??* Rolling Loud Advising Lib Kimmel, Accounting, 6

Question

gi u ow so e e e w Canvas pSL??* Rolling Loud Advising Lib Kimmel, Accounting, 6e HeIR I System Announcements CALCULATOR PRINTER VERSION Brief Exercise G-8 For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the discount rate. (1) In Table 3 (Present Value of 1): Number of Discounts Annual Rate Years Involved Case A Case B Case C 12% 8% 1096 per Year Annually Annually Semiannually Case A periods periods periods (2) In Table 4 (Present Value of an Annuity of 1) Case B Case C Number of Number of Frequency of Annual Rate Years Involved Payments Involved Payments Case A Case B Case C 10% 10% 6% 20 20 10 Case A Case B Case C periods

Explanation / Answer

Solution 1:

Solution 2:

Particulars Interest rate Period Case A 12% 7 Case B 8% 11 Case C 5% 16

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