000 1000 1500 3000 $2.000

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
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PLEASE USE THE EQUATIONS THAT ARE GIVEN IN THE PROBLEM.

Not use excel

 

Calculate the Future worth, at year 7, of the following cash flow. Consider 6% annual interest rate
compounded sermiannually
2000
1000
1500
3000
$2.000
2500 3000
Interest Tables
= (1 + )" - 1
where
= effective annual interest rate
= rate for one compounding period
m=number times interest is compounded per vear
where = effective interest rate for any time penod
= nominal rate for same time period as
m=no times interest s .comp d in percd specified fori
Transcribed Image Text:Calculate the Future worth, at year 7, of the following cash flow. Consider 6% annual interest rate compounded sermiannually 2000 1000 1500 3000 $2.000 2500 3000 Interest Tables = (1 + )" - 1 where = effective annual interest rate = rate for one compounding period m=number times interest is compounded per vear where = effective interest rate for any time penod = nominal rate for same time period as m=no times interest s .comp d in percd specified fori
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