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You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value)

You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value)

Essentials Of Investments
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
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You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value) Entering your answer: . No dollar signs. . Round to the nearest cent (2 decimal places) . Use commas as appropriate. Only enter the numerical value, no variables, no equal signs
Transcribed Image Text:You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value) Entering your answer: . No dollar signs. . Round to the nearest cent (2 decimal places) . Use commas as appropriate. Only enter the numerical value, no variables, no equal signs
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