What is the one-year discount factor

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If $1,000 is the present value of $1,250 to be received at the end of two years, what is the one-year discount factor (to the closest hundredth of a percentage point)?

A. 0.89

B. 1.25

C. 0.80

D. None of the above

 

What is the effective annual rate of a 12% interest rate per year, compounded monthly?

A. 11.27%

B. 12.00%

C. 12.36%

D. 12.54%

E. 12.68%

 

What is the present value of a $2000 per year annuity at a discount rate of 15% for 15 years?

A. $8,137

B. $11,695

C. $17,028

D. None of the above

 

Reference no: EM13340698

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