ABC Corporation has invested $2.5 million every 3 months in an investment which earns interest at the rate of 10.5% per year compounded quarterly. The first investment will be at the end of this current quarter. To what sum will the investment grow at the end of 5 years? How much interest will be earned during this period? After 5 years the corporation give loan to XYZ Company that accumulated amount for another 3 years. What amount finally ABC Corporation will have after 8 years time. How much interest will be earned after 8 years
ABC Corporation has invested $2.5 million every 3 months in an investment which earns interest at the rate of 10.5% per year compounded quarterly. The first investment will be at the end of this current quarter. To what sum will the investment grow at the end of 5 years? How much interest will be earned during this period? After 5 years the corporation give loan to XYZ Company that accumulated amount for another 3 years. What amount finally ABC Corporation will have after 8 years time. How much interest will be earned after 8 years
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
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ABC Corporation has invested $2.5 million every 3 months in an investment which earns interest at the rate of 10.5% per year compounded quarterly. The first investment will be at the end of this current quarter.
- To what sum will the investment grow at the end of 5 years?
- How much interest will be earned during this period?
After 5 years the corporation give loan to XYZ Company that accumulated amount for another 3 years. What amount finally ABC Corporation will have after 8 years time. How much interest will be earned after 8 years.
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