Complete the table below giving the principal P that must be invested at interest rate 10.5 % compounded quarterly to obtain a balance of A = $ 120000 in t years. t P 1 10 20 30 40 50 Submit Question
Complete the table below giving the principal P that must be invested at interest rate 10.5 % compounded quarterly to obtain a balance of A = $ 120000 in t years. t P 1 10 20 30 40 50 Submit Question
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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Complete the table below giving the principal P that must be invested at interest rate 10.5 % compounded quarterly to obtain a balance of A = $ 120000 in t years.
Transcribed Image Text:Complete the table below giving the principal P that must be invested at interest rate 10.5 % compounded
quarterly to obtain a balance of A = $ 120000 in t years.
t
P
10
20
30
40
50
Submit Question
Expert Solution
Step 1
The Principal value is given as:
P = A / (1+r/n)nt
where, A = amount after t years
r = compounding interest rate
n = number of compounding periods
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