You need to pay off a car loan within the next two years. The payment will be $4,000 everymonth. Today you have made a single deposit into a return-guaranteed investment accountthat will allow you to cope with all the monthly payments. This account earns an effectiveannual interest rate of 12.68250301%.What is the amount of the single deposit made today?
You need to pay off a car loan within the next two years. The payment will be $4,000 everymonth. Today you have made a single deposit into a return-guaranteed investment accountthat will allow you to cope with all the monthly payments. This account earns an effectiveannual interest rate of 12.68250301%.What is the amount of the single deposit made today?
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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You need to pay off a car loan within the next two years. The payment will be $4,000 every
month. Today you have made a single deposit into a return-guaranteed investment account
that will allow you to cope with all the monthly payments. This account earns an effective
annual interest rate of 12.68250301%.What is the amount of the single deposit made today?
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