investor pays the following separate amounts into a fund: £12,100 at t=7 years £17,900 at t=13 years £12,300 at t=28 years The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (i.e. at time t=0). ONLY formulas, please, no tables) answer is N
investor pays the following separate amounts into a fund: £12,100 at t=7 years £17,900 at t=13 years £12,300 at t=28 years The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (i.e. at time t=0). ONLY formulas, please, no tables) answer is N
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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Question
An investor pays the following separate amounts into a fund:
£12,100 at t=7 years
£17,900 at t=13 years
£12,300 at t=28 years
The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the
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