An investor agrees to pay R1500 amount after 13 years. In return he will receive R10 000 in 10 years time. If the effective interest rate is 7% p.a. for the first 5 years, 9% p.a. for the second 5 mediately, R3000 after years and a years and 12% p.a. thereafter, find the further amount that must be paid.
An investor agrees to pay R1500 amount after 13 years. In return he will receive R10 000 in 10 years time. If the effective interest rate is 7% p.a. for the first 5 years, 9% p.a. for the second 5 mediately, R3000 after years and a years and 12% p.a. thereafter, find the further amount that must be paid.
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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An investor agrees to pay R1500 immediately, R3000 after 7 years and a further
amount after 13 years. In return he will receive R10 000 in 10 years time.
If the effective interest rate is 7% p.a. for the first 5 years, 9% p.a. for the second 5
years and 12% p.a. thereafter, find the further amount that must be paid.
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