Sam has promised to make four payments to joe each

Reference no: EM13611005

Sam has promised to make four payments to Joe. Each paymentis in the amount of $1,000. What is the present value of these cashflows if the annual rate is 12%, and the payments begin?

a.One year from today, and are paid annually?

b.Six months from today, and are paid semiannually?

c.Three months from today, and are paid quarterly? Which method of payments do you think Sam and Joe would preferand why?

Reference no: EM13611005

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