How much will you have at the end of 20 years if you invest $100 at the end of the month starting a month from today and subsequently you invest 0.6% more each month. The interest rate is stated as an annual rate of 15% compounded monthly?
How much will you have at the end of 20 years if you invest $100 at the end of the month starting a month from today and subsequently you invest 0.6% more each month. The interest rate is stated as an annual rate of 15% compounded monthly?
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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Hello.
I am stuck on this question, how can i solve it using formulas
How much will you have at the end of 20 years if you invest $100 at the end of the
month starting a month from today and subsequently you invest 0.6% more each month.
The interest rate is stated as an annual rate of 15% compounded monthly?
Expert Solution
Step 1: Explanation of the FV of an investment
The FV of an investment refers to the combined worth of the cash flows of the investment at a predetermined future date assuming that the cash flows grow to that date at a fixed rate. It is used by investors to compare potential investments and find the value of their holdings.
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