A contract calls for semi-annual payments of P40,000 for the next 10 years and an additional payment of P250,000 at the end of that time. Find the equivalent cash value of the contract at 7% compounded semi- annually? *

A contract calls for semi-annual payments of P40,000 for the next 10 years and an additional payment of P250,000 at the end of that time. Find the equivalent cash value of the contract at 7% compounded semi- annually? *

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

A contract calls for semi-annual payments of P40,000 for the next 10
years and an additional payment of P250,000 at the end of that time. Find
the equivalent cash value of the contract at 7% compounded semi-
annually? *

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