Complete the table below giving the principal

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Complete the table below giving the principal PP that must be invested at interest rate 5 % compounded weekly to obtain a balance of AA = $ 150000 in tt years

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 Time value of money (TVM ) means that the money received today will  have more than the money received in the future. It is based on the concept that the earlier receipts are worth  more than the later receipts. The process of finding the present value using the future value, compounding periods and the interest rate is called discounting.

PV=FV1+rn

Where,

PV = Present value or Principal deposit

FV = Future value

n    = Number of compounding period

r    = Interest rate

 

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