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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As per the honor code we are bound to give the answer of first question only, please post the remaining question separately so that our other expert will assist you on that.
Future Value is the value which is measured at a specified date at a given interest rate, it can be calculated over a lumpsum period of payment done on annuity basis.
If Lumpsum amount invested then Future value = Principle x (1+r)^n
Whereas if payment made on annuity basis then Future value = Cash Payment on periodic Basis x {(1+r)^n-1)/r}
Here r is the interest rate
and n is the number of payment
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