Find the present value and the accumulation at the end of 10 years of a series of payments that are made up by: • £200 annually in arrears during the first 3 years, • £35 monthly in arrears thereafter, given that the following interest rates apply: • 9% per annum effective for the first 5 years,
Find the present value and the accumulation at the end of 10 years of a series of payments that are made up by: • £200 annually in arrears during the first 3 years, • £35 monthly in arrears thereafter, given that the following interest rates apply: • 9% per annum effective for the first 5 years,
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:Find the present value and the accumulation at the end of 10 years of a series of payments that are
made up by:
£200 annually in arrears during the first 3 years,
£35 monthly in arrears thereafter,
given that the following interest rates apply:
9% per annum effective for the first 5 years,
6% per annum nominal convertible monthly thereafter.
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CORRECT ANSWERS ARE ?? = £2,276.55 and ? = £4,724.73
NO TABLES, ONLY FORMULAS PLEASE
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