you brought an investment that pays 2000 each year for 10 years, starting in year 10. (i) if the interest rate for investment of this type was 8%. how much would it have cost you? (ii) five years have passed, the rate required by investor is now 10%, what is the investment now worth?
you brought an investment that pays 2000 each year for 10 years, starting in year 10. (i) if the interest rate for investment of this type was 8%. how much would it have cost you? (ii) five years have passed, the rate required by investor is now 10%, what is the investment now worth?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 7Q
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you brought an investment that pays 2000 each year for 10 years, starting in year 10. (i) if the interest rate for investment of this type was 8%. how much would it have cost you? (ii) five years have passed, the rate required by investor is now 10%, what is the investment now worth?
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