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a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of 3rd year; TK. 20,000 at the end of Sth year; and TK. 25,000 at the end of 7th year if interest is compounded continuously? worth TK 10 million on aootc

a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of 3rd year; TK. 20,000 at the end of Sth year; and TK. 25,000 at the end of 7th year if interest is compounded continuously? worth TK 10 million on aootc

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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a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of 3rd year; TK. 20,000 at the end of Sth year; and TK. 25,000 at the end of 7th year if interest is compounded continuously? b) A company is thinking of acquiring fixed assets worth TK. 10 million on financial lease for five ycars at an interest rate of 12%. The lcase would be amortized over five years by equal annual installments. You are required to calculate annual installment and show how lease is amortized over five years if installment is paid at year cnd or at the beginning of the year.
Transcribed Image Text:a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of 3rd year; TK. 20,000 at the end of Sth year; and TK. 25,000 at the end of 7th year if interest is compounded continuously? b) A company is thinking of acquiring fixed assets worth TK. 10 million on financial lease for five ycars at an interest rate of 12%. The lcase would be amortized over five years by equal annual installments. You are required to calculate annual installment and show how lease is amortized over five years if installment is paid at year cnd or at the beginning of the year.
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