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А — 2500 0—і—2—3—4— n = ? F = 61,307

А — 2500 0—і—2—3—4— n = ? F = 61,307

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
Problem 1PS
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4-11

The cash flows have a present value of 0. Compute the value of n, assuming a 10% interest rate.

 
The diagram in the image depicts a timeline with discrete points marked from 0 to \( n \), with arrows pointing upward at each integer value from 0 to \( n \). The values on these arrows represent regular increments of 2500, labeled as \( A = 2500 \). The arrow at \( n \) points downward to the label \( F = 61,307 \). To break down the elements present: 1. **Timeline Representation:** - The horizontal axis is marked with integer points \( 0, 1, 2, 3, 4, 5, 6, \ldots, n \). - Each integer point along this timeline is labeled with corresponding sequential numbers. 2. **Repeated Increment Indicator:** - There are arrows pointing upward from each integer point along the timeline (from 0 to \( n \)). - These upward arrows are uniform and represent a repeated increment labeled \( A = 2500 \). 3. **Final Value Indicator:** - From the last integer point \( n \), there is an arrow pointing downward indicating a final value labeled \( F = 61,307 \). 4. **Query for Value of \( n \):** - The horizontal axis concludes with a question mark at \( n \), implying an unknown value of \( n \) that needs to be determined. The visual representation clearly suggests that the total value \( F \) accrued from the incremental arrows (each contributing 2500) over the points \( 0 \) to \( n \) results in \( F = 61,307 \). The goal is to determine the value of \( n \).
Transcribed Image Text:The diagram in the image depicts a timeline with discrete points marked from 0 to \( n \), with arrows pointing upward at each integer value from 0 to \( n \). The values on these arrows represent regular increments of 2500, labeled as \( A = 2500 \). The arrow at \( n \) points downward to the label \( F = 61,307 \). To break down the elements present: 1. **Timeline Representation:** - The horizontal axis is marked with integer points \( 0, 1, 2, 3, 4, 5, 6, \ldots, n \). - Each integer point along this timeline is labeled with corresponding sequential numbers. 2. **Repeated Increment Indicator:** - There are arrows pointing upward from each integer point along the timeline (from 0 to \( n \)). - These upward arrows are uniform and represent a repeated increment labeled \( A = 2500 \). 3. **Final Value Indicator:** - From the last integer point \( n \), there is an arrow pointing downward indicating a final value labeled \( F = 61,307 \). 4. **Query for Value of \( n \):** - The horizontal axis concludes with a question mark at \( n \), implying an unknown value of \( n \) that needs to be determined. The visual representation clearly suggests that the total value \( F \) accrued from the incremental arrows (each contributing 2500) over the points \( 0 \) to \( n \) results in \( F = 61,307 \). The goal is to determine the value of \( n \).
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