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
You wish to have $23,000 in 10 years. Find how much you should invest now (in $) at 6% interest, compounded quarterly in order to have $23,000, 10 years from now. (Round your answer to the nearest cent.)
Expert Solution
Step 1
Formula to calculate present value or amount to be invested now in compound interest is:
PV = FV/(1+r)^n
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