Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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don't use excel also can you show me maths solving with equation by hand please....
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Step 1
2000 for 4 years
1000 for 4 years
Required rate =10%
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Step 2
Present value FACTOR =1-(1+r)^-n/r
Present value FACTOR =1-(1.1)-4/0.1
present value FACTOR =3.17
Present value of 2000 YEARLY =2000×3.17
Present value of 2000=6340
Than 1000 after wards
Present value of 1000=3.17×1000/(1.1)4
Present value of 1000=2165.15
Total present value =6340+2165.15=8505.15
Total present value =8505.15
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