Company PQR is starting a sinking fund for two future purchases. The risk free rate is 3.2%. They will need $500,000 in ten years and another $800,000 in 13 years (from today). How much should they be saving per month if they were just saving for the first item? $ 4546.45 x How much should they be saving per month if they were just saving for the second item? $4546.45 X How much should they be saving per month if they wanted level payments for the two purchases? $ 7833.75 X With level payments, will they have enough to buy the first item on schedule? 1142767.11
Company PQR is starting a sinking fund for two future purchases. The risk free rate is 3.2%. They will need $500,000 in ten years and another $800,000 in 13 years (from today). How much should they be saving per month if they were just saving for the first item? $ 4546.45 x How much should they be saving per month if they were just saving for the second item? $4546.45 X How much should they be saving per month if they wanted level payments for the two purchases? $ 7833.75 X With level payments, will they have enough to buy the first item on schedule? 1142767.11
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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Transcribed Image Text:Company PQR is starting a sinking fund for two future purchases. The risk free rate is 3.2%. They will need $500,000 in ten years and another $800,000 in 13 years (from
today).
How much should they be saving per month if they were just saving for the first item?
$4546.45
x
How much should they be saving per month if they were just saving for the second item?
$4546.45
X
How much should they be saving per month if they wanted level payments for the two purchases?
$7833.75
X
With level payments, will they have enough to buy the first item on schedule?
1142767.11
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