What Would Be the Present Value on January 1, Year

question 43

Essay

What would be the present value on January 1, year 1, of a $6,000 note (this amount includes both principal and interest) which is payable in full on December 31, year 4, at a 12 percent interest rate, assuming:
(a) Annual discounting? $_______________________.
(b) Semi-annual discounting? $_______________________.
(c) Quarterly discounting? $_______________________.

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Definitions:

Marketing Mix

A set of actionable marketing tools—Product, Price, Place, and Promotion—that a company uses to pursue its marketing objectives in the target market.

Target Audience

A specific group of consumers identified as the recipients of a particular marketing message or campaign, based on demographics, interests, or other characteristics.

Services Offered

The various tasks or acts that a company performs for customers in exchange for payment, which can include physical, intangible, or digital activities.

Descriptive Research

A research method focused on describing characteristics of a population or phenomenon being studied without influencing them.