Tim makes four payments of 3000 at four year intervals starting today (annuity due). Interest is credited at a nominal interest rate of 6% compounded semiannually for the first 10 years and nominal discount rate of 3% compounded monthly thereafter. Calculate the accumulated value 20 years from now.

Tim makes four payments of 3000 at four year intervals starting today (annuity due). Interest is credited at a nominal interest rate of 6% compounded semiannually for the first 10 years and nominal discount rate of 3% compounded monthly thereafter. Calculate the accumulated value 20 years 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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Question

7. Tim makes four payments of 3000 at four year intervals starting today (annuity due).
Interest is credited at a nominal interest rate of 6% compounded semiannually for
the first 10 years and nominal discount rate of 3% compounded monthly thereafter.
Calculate the accumulated value 20 years from now.

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