2. Suppose you have just celebrated your 17th birthday. A rich uncle set up a trust fund for you that will pay you Php 100,000 when you turn 25. If the relevant discount rate is 11%, compounded annually, how much is this fund worth today?

Essentials Of Investments
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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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2. Suppose you have just celebrated your 17th birthday. A rich uncle set up a
trust fund for you that will pay you Php 100,000 when you turn 25. If the
relevant discount rate is 11%, compounded annually, how much is this fund
worth today?
Transcribed Image Text:2. Suppose you have just celebrated your 17th birthday. A rich uncle set up a trust fund for you that will pay you Php 100,000 when you turn 25. If the relevant discount rate is 11%, compounded annually, how much is this fund worth today?
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