Question
1.) a. How much money you can invest now, so that you can make five equal withdrawals of $500, starting three years from now, at
1.) a. How much money you can invest now, so that you can make five equal withdrawals of $500, starting three years from now, at an interest rate of 8%. (P/A, 8%, 5) = 3.9927 and (P/F, 8%, 2) = 0.8573
b. What effective interest rate per year is equivalent to a nominal rate of 10% per year compounded semiannually and continuously?
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Econometric Analysis Of Cross Section And Panel Data
Authors: Jeffrey M Wooldridge, J M Wooldridge
2nd Edition
0262232588, 9780262232586
