1.

If the 5-year discount factor is 0.7008, what is the interest rate?

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ANSWER:

Step-by-step exT/F When money is invested at compound interest, the GROWTH rate is the ... T/F The discount factor is USED to calculate the present VALUE of $1 received in year t. ... What is the discount factor of $1 to be received in 5 YEARS at a discount rate of 8%? ... 5 years from today, the discount factor has been calculated to be 0.7008.planation:



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