A wealthy business man promises to donate $10,622.00 to charity every six months for 20 years (at the end of every period). The current interest rate is 8.560% compounded quarterly, but it is projected to change to 11.020% (still compounded quarterly) after 7 years. What is the present value of the donation based on this projection? O a. X = $198,547.40. O b. X= $202,518.34.
A wealthy business man promises to donate $10,622.00 to charity every six months for 20 years (at the end of every period). The current interest rate is 8.560% compounded quarterly, but it is projected to change to 11.020% (still compounded quarterly) after 7 years. What is the present value of the donation based on this projection? O a. X = $198,547.40. O b. X= $202,518.34.
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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