An investment opportunity requires that you deposit $1000 a year for 5 years. At the end of this time you will receive $500 a year for 10 years. Is this a good deal if the interest rate available on other deposits is 5%?
An investment opportunity requires that you deposit $1000 a year for 5 years. At the end of this time you will receive $500 a year for 10 years. Is this a good deal if the interest rate available on other deposits is 5%?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An investment opportunity requires that you deposit $1000 a year for 5 years. At the end of this time you will receive $500 a year for 10 years. Is this a good deal if the interest rate available on other deposits is 5%?
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