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Q. 2 An investment of P=OR15000 is made for n=12 periods where the interest is compounded monthly. The period financial rates are assumed to be

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Q. 2 An investment of P=OR15000 is made for n=12 periods where the interest is compounded monthly. The period financial rates are assumed to be independent and identically distributed normal random variables. Find the probability of the present values exceeding 30000 after four years. Assume 7, = 0.01 and B, = 0.01 for all j21. Also find 99% prediction interval for the future value. Q. 2 An investment of P=OR15000 is made for n=12 periods where the interest is compounded monthly. The period financial rates are assumed to be independent and identically distributed normal random variables. Find the probability of the present values exceeding 30000 after four years. Assume 7, = 0.01 and B, = 0.01 for all j21. Also find 99% prediction interval for the future value

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