Question
A person pays $5000 into an investment which pays 8% per year for 10 years. Draw a cash flow diagram and show your sign
A person pays $5000 into an investment which pays 8% per year for 10 years. Draw a cash flow diagram and show your sign convention. Use the equations to calculate the final payment this person will receive at the end. Show all the numbers used in your equations. Use the equations one more time to back-calculate the initial investment and demonstrate that you can use the P/F and F/P equations.
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
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