The present value of a series of $5 at the end of every 5 years, forever, is equal to $20. i. Calculate the effective rate of interest. ii. What is the accumulated value of $9400 invested for 10 years after a 6% discount is paid at the beginning of the investment period? Please i need answer for only subpart ii
The present value of a series of $5 at the end of every 5 years, forever, is equal to $20. i. Calculate the effective rate of interest. ii. What is the accumulated value of $9400 invested for 10 years after a 6% discount is paid at the beginning of the investment period? Please i need answer for only subpart ii
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: The Basic Tools Of Finance
Section: Chapter Questions
Problem 1CQQ
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The present value of a series of $5 at the end of every 5 years, forever, is equal to $20.
i. Calculate the effective rate of interest.
ii. What is the accumulated value of $9400 invested for 10 years after a 6% discount is paid at the beginning of the investment period?
Please i need answer for only subpart ii
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