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
Related questions
Question
Find the accumulated value of an investment of $15,000 at 5% compounded semiannually for 12 years.
$20,173.33
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$27,130.89
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$26,937.84
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$24,000.00
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Expert Solution
Step 1 Analysis
We need to use compounding interest formula given below to calculate accumulated VALUE
A=P(1+i)n
Where
A=cumulated value/final payment
i=periodic interest rate
n=number of compounding
Step by step
Solved in 3 steps
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