4.) FEU has been bought by an individual. It is to be paid 4% compounded semi-annually, eight times a year for 10years with an amount of 3.8Million per payment. If the payment i is to start 4 years from today. What is the accumulated amount after 25 years? ANSWER: F = P575.2216 Million
4.) FEU has been bought by an individual. It is to be paid 4% compounded semi-annually, eight times a year for 10years with an amount of 3.8Million per payment. If the payment i is to start 4 years from today. What is the accumulated amount after 25 years? ANSWER: F = P575.2216 Million
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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Please help use the formula below and show the complete solution
Transcribed Image Text:4.) FEU has been bought by an individual. It is to be paid 4% compounded
semi-annually, eight times a year for 10years with an amount of 3.8Million
per payment. If the payment is to start 4 years from today. What is the
accumulated amount after 25 years? ANSWER: F=P575.2216 Million
Transcribed Image Text:FORMULAS
F=A(-
P=A(-
(1+i)-1
i
1- (¹+i)-yn
-)(1+i)ym
-) (1+i)-ym
F-Future Worth
P-Present Worth
A - Annuity
y-yrs
n-method of compounding
i-interest rate
m-delayed years
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