Use up to 6 decimal places during solving for the answer. Write all numerical final answers round off up to TWO (2) decimal places. 1. If I invest 32.195 today and expect a reimbursement every end of 6th month with a ROR of 0.13 compounded semi-annually for 3 years. How much will ! expect to receive every June and December of every year.

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
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Use up to 6 decimal places during solving for the answer.

Write all numerical final answers round off up to TWO (2) decimal places.

1. If I invest 32.195 today and expect a reimbursement every end of 6th month with a ROR of 0.13 compounded semi-annually for 3 years. How much will ! expect to receive every June and December of every year.

Expert Solution
Step 1

Data given:

Amount=32,195

ROR= 0.13 (compounded semi-annually)

N=3 years

 

Working Note #1

ROR (compounded semiannually) = 0.13/2= 0.065

 

 

 

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