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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
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
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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: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
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
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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