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Question 2: A pension fund manager knows the following liabilities must be satisfied. The manager will invest money today in an amount sufficient to pay
| Question 2: | A pension fund manager knows the following liabilities must be satisfied. The manager will invest money today in an amount sufficient to pay all of the liabilities in full. The manager can invest today at an annual interest rate of 3.75%, compounded semi-annually. How much must be invested today? | ||||
| Years from Now | Amount ($MM) | ||||
| 1 | $2.00 | ||||
| 2 | $2.20 | ||||
| 3 | $2.25 | ||||
| 4 | $2.40 | ||||
| 5 | $2.50 | ||||
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Urban Infrastructure Finance And Management
Authors: K. Wellman, Marcus Spiller
1st Edition
0470672188, 978-0470672181
