4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in the diagram). You decide to take this money out in installments of A riyals (each) from 2023-2025. Calculate the value of A, if the annual interest rate is 10 %. THE BASE YEAR of the scheme is YEAR 2023. V4,2 =1000 (F/A, 0.1, 3)........(1) V4,1= A +A (P/A, 0.1,2).......(2) If equations are equal; A=1206.5 Riyal
4. Consider that you are depositing 1000 Riyals, annually, from year 2021 to year 2023 (as shown in the diagram). You decide to take this money out in installments of A riyals (each) from 2023-2025. Calculate the value of A, if the annual interest rate is 10 %. THE BASE YEAR of the scheme is YEAR 2023. V4,2 =1000 (F/A, 0.1, 3)........(1) V4,1= A +A (P/A, 0.1,2).......(2) If equations are equal; A=1206.5 Riyal
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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Transcribed Image Text:4. Consider that you are depositing 1000 Riyals, annually, from
year 2021 to year 2023 (as shown in the diagram). You decide
to take this money out in installments of A riyals (each) from
2023-2025. Calculate the value of A, if the annual interest rate is
10 %. THE BASE YEAR of the scheme is YEAR 2023.
V42 =1000 (F/A, 0.1, 3)... .(1)
V4,1= A +A (P/A, 0.1,2).....
(2)
....
If equations are equal;
A=1206.5 Riyal
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