Sevim wants to create a savings of 95,000 TL at the end of 30 years. For this purpose, it plans to continue its investment by adding 120 TL to the bank at the end of each month for the first 120 months, and 120 TL + X TL for the remaining period. Calculate the value that X will receive under the assumption that the fund in which Sevim invests has an annual effective interest rate of 4.2%.

Sevim wants to create a savings of 95,000 TL at the end of 30 years. For this purpose, it plans to continue its investment by adding 120 TL to the bank at the end of each month for the first 120 months, and 120 TL + X TL for the remaining period. Calculate the value that X will receive under the assumption that the fund in which Sevim invests has an annual effective interest rate of 4.2%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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