Consider the following investment: $1,000 placed into a fund at the beginning of every quarter at an annual rate of interest of 15% compounded continuously. How long before the value of the fund is $1 million? (Round to the nearest year)

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Consider the following investment: $1,000 placed into a fund at the beginning of every
quarter at an annual rate of interest of 15% compounded continuously. How long before
the value of the fund is $1 million? (Round to the nearest year)

Expert Solution
Step 1: Introduction to the future value of annuity:

The sum of all these future cash flows at a given future date is represented as the annuity's future value. In financial planning, investments, and retirement savings, it is essential to comprehend the concept of future value.

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