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Consider a time period of eight years such that: v(1) = 0.9615384, v(4) = 0.8468182, v(7) = 0.73868 v(2) = 0.9071117, v(5) = 0.8064935, v(8)
Consider a time period of eight years such that: v(1) = 0.9615384, v(4) = 0.8468182, v(7) = 0.73868 v(2) = 0.9071117, v(5) = 0.8064935, v(8) = 0.68396 v(3) = 0.880691, v(6) = 0.7608429 (a) What is the present value at t = 0 of 100 due at t = 3. (b) What is the present value at t = 2 of 200 due at t = 6. (c) What is the accumulated value at t = 8 of 500 invested at t = 2. (d) How much should be invested at t = 4 to give 1,000 at t = 8. (e) What is the rate of investment return in the seventh year? (f) What is the overall equivalent effective annual rate of return for the eight year period?
Question 2 Consider a time period of eight years such that: v(7) = 0.73868 v(8) = 0.68396 15384, v(1) = 0.96 v(2) = 0.9071117, v(3) = 0.880691, v(4) =0.846818 v(5) = 0.8064935, v(6) = 0.7608429 2, (a) what is the present value at t = 0 of 100 due at t= 3. (b) what is the present value at t = 2 of 200 due at t = 6. (c) what is the accumulated value at t = 8 of 500 invested at t = 2. (d) How much should be invested at t 4 to give 1,000 at t8 (e) What is the rate of investment return in the seventh year? (f) What is the overall equivalent effective annual rate of return for the eight year period Step by Step Solution
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