Determine the Equivalent Single Rate of Discount for Each of the Following

Question

Examlex · Accepted Answer

The Answer is a)Single rate = 1 - (1- a)Single rate = 1 - (1- )(1-0.1)= 1-(0.8166667)(.9)= 26.5% b)Single rate = 1 - (1-0.5)(1- )(1-0.05)= 1-(0.50)( )(0.95)= 68.33333%

)(1-0.1)= 1-(0.8166667)(.9)= 26.5%
b)Single rate = 1 - (1-0.5)(1- a)Single rate = 1 - (1- )(1-0.1)= 1-(0.8166667)(.9)= 26.5% b)Single rate = 1 - (1-0.5)(1- )(1-0.05)= 1-(0.50)( )(0.95)= 68.33333%

)(1-0.05)= 1-(0.50)( a)Single rate = 1 - (1- )(1-0.1)= 1-(0.8166667)(.9)= 26.5% b)Single rate = 1 - (1-0.5)(1- )(1-0.05)= 1-(0.50)( )(0.95)= 68.33333%

)(0.95)= 68.33333%

Determine the Equivalent Single Rate of Discount for Each of the Following

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