Obtain the present value of $ 50,000 semiannually for five years, at an interest rate of 28% compounded semiannually.

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
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Obtain the present value of $ 50,000 semiannually for five years, at an interest rate of 28% compounded semiannually.

Note: Step by step to get to the result, do not skip anything.

Note2: If it can be done in excel it is better

Expert Solution
Step 1

PMT = 50,000

FV = 0

N = 5*2

rate = 28%/2

use PV function in Excel

 

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