2.3.2 The first of a series of 30 annual payments is 1000 and each sub- sequent payment is 1% smaller than the previous one. What is the accumulated value of this series at the time of the final payment if (i) i=1%, (ii) i=5%, and (iii) i = 10%? 1-(1+7)" i-r
2.3.2 The first of a series of 30 annual payments is 1000 and each sub- sequent payment is 1% smaller than the previous one. What is the accumulated value of this series at the time of the final payment if (i) i=1%, (ii) i=5%, and (iii) i = 10%? 1-(1+7)" i-r
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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Question
Please answer the question (ii) for i=5%. Please answer using the formula that is attached. The correct answer for (ii) i=5% is 59704. Please show step by step solution.
![2.3.2 The first of a series of 30 annual payments is 1000 and each sub-
sequent payment is 1% smaller than the previous one. What is the
accumulated value of this series at the time of the final payment if
(i) i=1%, (ii) i=5%, and (iii) i = 10%?
1-(1+7)"
i-r](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3bf2a50d-4512-42df-9825-e6fb8f760832%2F8539386d-f65b-4099-ba1d-60547974bec6%2Fy7a4o6_processed.png&w=3840&q=75)
Transcribed Image Text:2.3.2 The first of a series of 30 annual payments is 1000 and each sub-
sequent payment is 1% smaller than the previous one. What is the
accumulated value of this series at the time of the final payment if
(i) i=1%, (ii) i=5%, and (iii) i = 10%?
1-(1+7)"
i-r
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