Following the birth of a child, a parent wants to make an initial investment Po that will grow to $50,000 for the child’s education at age 17. Interest is compounded continuously at 5%. What should the initial investment be? Such an amount of called the present value of $50,000 due 17 years from now. The present value is about $?
Following the birth of a child, a parent wants to make an initial investment Po that will grow to $50,000 for the child’s education at age 17. Interest is compounded continuously at 5%. What should the initial investment be? Such an amount of called the present value of $50,000 due 17 years from now. The present value is about $?
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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Following the birth of a child, a parent wants to make an initial investment Po that will grow to $50,000 for the child’s education at age 17. Interest is compounded continuously at 5%. What should the initial investment be? Such an amount of called the present value of $50,000 due 17 years from now.
The present value is about $?
Transcribed Image Text:50&questionId=2&flushed=fals
Question 14, 5.6.43
e an initial investment Po that will grow to $50,000 for the
bunt is called the present value of $50,000 due 17 years fro
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