2. If we are going to reanalyze Problem No. 1 above, say if the ROR is 14% compounded semi-annually what will be the value of A?

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
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Please answer #2 as #1 as reference and please show formula, not "solve for" in calcu or using excel please :((

My son Liam is now 2 years old. I want to plan for his college education once he reached 17 yo until he finished his studies at the age of 22 yo. I am willing to
spend P10,000.00 today with a rate of return of 14%, in order to finance his college studies. How much will Liam receive every end of the year starting on his 17th
birthday until he finished his college studies at the age of 22?
Transcribed Image Text:My son Liam is now 2 years old. I want to plan for his college education once he reached 17 yo until he finished his studies at the age of 22 yo. I am willing to spend P10,000.00 today with a rate of return of 14%, in order to finance his college studies. How much will Liam receive every end of the year starting on his 17th birthday until he finished his college studies at the age of 22?
2. If we are going to reanalyze Problem No. 1 above, say if the ROR is 14% compounded semi-annually what will be the value of A?
Transcribed Image Text:2. If we are going to reanalyze Problem No. 1 above, say if the ROR is 14% compounded semi-annually what will be the value of A?
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