Your high school classmate is offering you an investment opportunity which requires you to make monthly payments of $475 each (1st payment is 1 month from today), over the next 17 years. It offers a nominal annual return of 6 % with semi-annual compounding. What is the future value of this investment at the end of its life (including all your payments and all interest)? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).
Your high school classmate is offering you an investment opportunity which requires you to make monthly payments of $475 each (1st payment is 1 month from today), over the next 17 years. It offers a nominal annual return of 6 % with semi-annual compounding. What is the future value of this investment at the end of its life (including all your payments and all interest)? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).
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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Your high school classmate is offering you an investment opportunity which requires you to make monthly payments of $475 each (1st payment is 1 month from today), over the next 17 years. It offers a nominal annual return of 6 % with semi-annual compounding. What is the future value of this investment at the end of its life (including all your payments and all interest)? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).
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