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A financial advisor recommends you a savings plan according to which you will make a payment of 5 0 0 every 6 months for 5
A financial advisor recommends you a savings plan according to
which you will make a payment of every months for years and guarantees a nominal return per annum and compounded semiannually. The st payment will be made today and the last one in
years total of payments You will receive the savings amount in years from today.
Calculate:
i How much money will you receive at the end of years?
ii If you were given the option to deposit a lump sum today, what amount would you have to deposit so that at the end of years you would receive the same amount as in question i Without making any other interim deposits?
Please show workings also in an excel file.
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