A start-up engineering company invested in a fund that promises 14% interest

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
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A start-up engineering
company invested in a fund that
promises 14% interest
compounded monthly. It
requires P4,000 end-of-month
payments for the next 10 years.
This fund can be withdrawn after
15 years. Assume that the
investment occurs at time zero
(now).
What will be the equivalent fund value on the
th
15
payment?
Transcribed Image Text:A start-up engineering company invested in a fund that promises 14% interest compounded monthly. It requires P4,000 end-of-month payments for the next 10 years. This fund can be withdrawn after 15 years. Assume that the investment occurs at time zero (now). What will be the equivalent fund value on the th 15 payment?
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