0-year-old Icelandic venture capitalist has lost significant funds due to unprofitable investments. He has therefore decided to turn to a secure long-term investment by doing so balances the monthly deposits into the bank book for the next 10 years so that he can withdraw evenly monthly withdrawals in the amount of ISK. 350,000 for the next 20 years after that and at the end no deposit to remain on the bank book. Annual interest amounts to 5.0%, calculated monthly. How high amount must he deposit into the account for the next 10 years? How much money can be received he total growth in these 30 years?
0-year-old Icelandic venture capitalist has lost significant funds due to unprofitable investments. He has therefore decided to turn to a secure long-term investment by doing so balances the monthly deposits into the bank book for the next 10 years so that he can withdraw evenly monthly withdrawals in the amount of ISK. 350,000 for the next 20 years after that and at the end no deposit to remain on the bank book. Annual interest amounts to 5.0%, calculated monthly. How high amount must he deposit into the account for the next 10 years? How much money can be received he total growth in these 30 years?
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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A 30-year-old Icelandic venture capitalist has lost significant funds due to unprofitable investments. He has therefore decided to turn to a secure long-term investment by doing so balances the monthly deposits into the bank book for the next 10 years so that he can withdraw evenly monthly withdrawals in the amount of ISK. 350,000 for the next 20 years after that and at the end no deposit to remain on the bank book. Annual interest amounts to 5.0%, calculated monthly. How high amount must he deposit into the account for the next 10 years? How much money can be received he total growth in these 30 years?
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