Question
Consider an account with an interest rate of 12% per year, compounded semiannually. An investment of $3,000,000 is made into the account semiannually starting in
Consider an account with an interest rate of 12% per year, compounded semiannually. An investment of $3,000,000 is made into the account semiannually starting in Year 1 and ending at the end of Year 5.
Show the cash flow diagram. What is the semiannual interest rate?
What is the present value of all investments made into the account?
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
