Someone invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1511 per annum for the first 8 years followed by £1971 per annum until the end of year 22 (inclusive). Assume a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, the value of this investment at the time of withdrawal of t=31 years. correct answer = 133570.39, No tables, only FORMULAS, please
Someone invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1511 per annum for the first 8 years followed by £1971 per annum until the end of year 22 (inclusive). Assume a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, the value of this investment at the time of withdrawal of t=31 years. correct answer = 133570.39, No tables, only FORMULAS, please
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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Someone invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels:
£1511 per annum for the first 8 years followed by
£1971 per annum until the end of year 22 (inclusive).
Assume a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, the value of this investment at the time of withdrawal of t=31 years.
correct answer = 133570.39, No tables, only FORMULAS, please
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