For each of the following cases, indicate (a) to what interest rate columns and (b) to what number of periods you would refer in looking up the discount rate. (1) In Table 3 (present value of 1):
|
Annual |
Number of |
Discounts |
|
|
Case A |
12% |
6 |
Annually |
|
Case B |
10% |
11 |
Annually |
|
Case C |
6% |
9 |
Semiannually |
|
Annual |
Number of |
Number of |
Frequency of |
|
|
Case A |
12% |
20 |
20 |
Annually |
|
Case B |
10% |
5 |
5 |
Annually |
|
Case C |
8% |
4 |
8 |
Semiannually |