RD Inc. projects the following quarterly expenses over a 2-year period of time beginning 3 years and 3 months from now. What quarterly deposits must the company make over the next 3 years to pay these expenses up front? Alternatively, what lump sum deposit could the company make today to fund this future spending? Interest is 8% annual, compounded quarterly. Quarter quarter 0 1 2 3 4 5 6 7 8 cf 0 100000 105000 110000 115000 120000 125000 130000 135000
RD Inc. projects the following quarterly expenses over a 2-year period of time beginning 3 years and 3 months from now. What quarterly deposits must the company make over the next 3 years to pay these expenses up front? Alternatively, what lump sum deposit could the company make today to fund this future spending? Interest is 8% annual, compounded quarterly. Quarter quarter 0 1 2 3 4 5 6 7 8 cf 0 100000 105000 110000 115000 120000 125000 130000 135000
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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RD Inc. projects the following quarterly expenses over a 2-year period of time beginning 3 years and 3 months from now. What quarterly deposits must the company make over the next 3 years to pay these expenses up front? Alternatively, what lump sum deposit could the company make today to fund this future spending? Interest is 8% annual, compounded quarterly. Quarter
quarter | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
cf | 0 | 100000 | 105000 | 110000 | 115000 | 120000 | 125000 | 130000 | 135000 |
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