Suppose an investor will receive payments at the end of the next six years in the amounts shown in the table. Ycar 1 2 3 4 6 Payment 465 233 632 365 334 248 If the interest rate is 3.5% compounded semiannually, what is the present value of the investment?. [Assume the first payment will arrive one year from now].
Suppose an investor will receive payments at the end of the next six years in the amounts shown in the table. Ycar 1 2 3 4 6 Payment 465 233 632 365 334 248 If the interest rate is 3.5% compounded semiannually, what is the present value of the investment?. [Assume the first payment will arrive one year from now].
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
Problem 1PS
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Suppose an investor will receive payments at the end of the next six years in the
amounts shown in the table.
6
248
Ycar
1
5
4
2 3
Payment 465 233 632 365 334
If the interest rate is 3.5% compounded semiannually, what is the present value of
the investment?. [Assume the first payment will arrive one year from now].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3701403a-0e41-4fc3-a27f-fdfb9e6982d5%2Fa2fc32dc-5efb-43a8-a591-1942633c5a0e%2Fqz76abe_processed.png&w=3840&q=75)
Transcribed Image Text:ربو
Suppose an investor will receive payments at the end of the next six years in the
amounts shown in the table.
6
248
Ycar
1
5
4
2 3
Payment 465 233 632 365 334
If the interest rate is 3.5% compounded semiannually, what is the present value of
the investment?. [Assume the first payment will arrive one year from now].
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Step 1: Formula.
VIEWStep 2: Computation of Present value of payment of year 1.
VIEWStep 3: Computation of Present value of payment of year 2.
VIEWStep 4: Computation of Present value of payment of year 3.
VIEWStep 5: Computation of Present value of payment of year 4.
VIEWStep 6: Computation of Present value of payment of year 5.
VIEWStep 7: Computation of Present value of payment of year 6.
VIEWStep 8: Computation of present value of investment.
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