Q6. For the cash flow sequence shown below (in thousands of dollars), determine the amount of money that can be withdrawn annually for an infinite period of time, if the first withdrawal is to be made in year 10 and the interest rate is 12% per year. Year 0 1 2 3 4 5 60 100 90 80 70 60 50 40molto Deposit amount, $ (a) $116.69 (b) $136.69 (c) $128.69 (d) $126.69 (e) your answer (............)
Q6. For the cash flow sequence shown below (in thousands of dollars), determine the amount of money that can be withdrawn annually for an infinite period of time, if the first withdrawal is to be made in year 10 and the interest rate is 12% per year. Year 0 1 2 3 4 5 60 100 90 80 70 60 50 40molto Deposit amount, $ (a) $116.69 (b) $136.69 (c) $128.69 (d) $126.69 (e) your answer (............)
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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Transcribed Image Text:Q6. For the cash flow sequence shown below (in thousands of dollars), determine the amount of
money that can be withdrawn annually for an infinite period of time, if the first withdrawal is to be
JA
made in year 10 and the interest rate is 12% per year.
Year
0
1
2 3
4
5
6
dedister A bar
100 90 80 70 60 50 40
Deposit
amount, $
(a) $116.69 (b) $136.69 (c) $128.69 (d) $126.69 (e) your answer (............)
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