Kathy's rich uncle promises her $1,000 per month, starting today, with a final payment to be made 6 months from today. If the interest rate is 0.50 percent per month, what is the present value of the cash flows?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
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Kathy's rich uncle promises her $1,000 per
month, starting today, with a final payment to be
made 6 months from today. If the interest rate is
0.50 percent per month, what is the present
value of the cash flows?
Transcribed Image Text:Kathy's rich uncle promises her $1,000 per month, starting today, with a final payment to be made 6 months from today. If the interest rate is 0.50 percent per month, what is the present value of the cash flows?
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