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Determine when computing the pv of the inheritance

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Reference no: EM132483028

Question 1: Martha left an inheritance to her grandson that will pay him $1,500 on the first day of every other year. When computing the PV of this inheritance, the grandson should use:

Multiple Choice

  1. an effective annual rate.
  2. a semiannually compounded discount rate.
  3. a semiannual discount rate.
  4. simple interest.
  5. a 2-year discount rate.

Reference no: EM132483028

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