Problem 5 - NPV and Reinvestment Rates Ryan invests $10000 in Fund 1 earning 5% effective. He withdraws the interest earned at the end of
Problem 5 - NPV and Reinvestment Rates Ryan invests $10000 in Fund 1 earning 5% effective. He withdraws the interest earned at the end of each year and reinvest it in Fund 2 earning 8% effective. How much does Ryan have in total at the end of 14 years? The AV in Fund 1 is AV1= The AV in Fund 2 is AV2= At the end of 14 years, Ryan has in total AV=AV1+AV2
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Authors: Louis Gapenski
5th Edition
1567936113, 978-1567936117
