Question
A company must pay a $307,000 settlement in 4 years. (a) What amount must be deposited now at 7% compounded semiannually to have enough money
A company must pay a
$307,000
settlement in
4
years.
(a) What amount must be deposited now at
7%
compounded semiannually to have enough money for thesettlement?
(b) How much interest will be earned?
(c) Suppose the company can deposit
$100,000
now in an account that pays interest continuously. What interest rate would they need to accumulate the entire
$307,000
in
4
years?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
