An individual invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1367 per annum for the first 7 years followed by £1900 per annum until the end of year 26 (inclusive). Assuming a nominal rate of interest of 5.5% pa convertible quarterly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=31 years. (correct answer = 125712.75, ONLY formulas, no tables, please)
An individual invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1367 per annum for the first 7 years followed by £1900 per annum until the end of year 26 (inclusive). Assuming a nominal rate of interest of 5.5% pa convertible quarterly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=31 years. (correct answer = 125712.75, ONLY formulas, no tables, please)
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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An individual invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels:
£1367 per annum for the first 7 years followed by
£1900 per annum until the end of year 26 (inclusive).
Assuming a nominal rate of interest of 5.5% pa convertible quarterly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=31 years. (correct answer = 125712.75, ONLY formulas, no tables, please)
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