To save for a personal computer, you decide to invest part of your salary each month. the computer that you want to buy currently costs r5684 but due to inflationary expectations, its expected to escalate at a compound rate of 4% percent pa. if you can invest your money at 13% percent pa compounded monthly, how much would you need to invest at the end of each month if you wish to purchase the computer after 2 years.
To save for a personal computer, you decide to invest part of your salary each month. the computer that you want to buy currently costs r5684 but due to inflationary expectations, its expected to escalate at a compound rate of 4% percent pa. if you can invest your money at 13% percent pa compounded monthly, how much would you need to invest at the end of each month if you wish to purchase the computer after 2 years.
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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To save for a personal computer, you decide to invest part of your salary each month. the computer that you want to buy currently costs r5684 but due to inflationary expectations, its expected to escalate at a compound rate of 4% percent pa. if you can invest your money at 13% percent pa compounded monthly, how much would you need to invest at the end of each month if you wish to purchase the computer after 2 years.
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