1. Let the annual interest rate be 6%. Compute 87 Enter an answer correct to 6 decimal places. äz Enter an answer correct to 6 decimal places. 2. A fund is to be created which pays out a scholarship of £8,000 every year in perpetuity. The first scholarship will be paid out in 9 years' time. Assuming an interest rate of 2%, how much should be paid into the fund? £ Enter an answer correct to 2 decimal places.
1. Let the annual interest rate be 6%. Compute 87 Enter an answer correct to 6 decimal places. äz Enter an answer correct to 6 decimal places. 2. A fund is to be created which pays out a scholarship of £8,000 every year in perpetuity. The first scholarship will be paid out in 9 years' time. Assuming an interest rate of 2%, how much should be paid into the fund? £ Enter an answer correct to 2 decimal places.
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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Could you show me formulas and solutions, thank you
Transcribed Image Text:1. Let the annual interest rate be 6 %. Compute
871
Enter an answer correct to 6 decimal places.
ä7
Enter an answer correct to 6 decimal places.
2. A fund is to be created which pays out a scholarship of £8,000 every year in perpetuity. The first scholarship will be paid out in
9 years' time.
Assuming an interest rate of 2%, how much should be paid into the fund?
£
Enter an answer correct to 2 decimal places.
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