Question
SRV Engineering understands the risk of getting too deeply into debt. Suppose that instead of getting a $40 million loan, the firm decides to make
SRV Engineering understands the risk of getting too deeply into debt. Suppose that instead of getting a $40 million loan, the firm decides to make an investment. They will make monthly deposits of $447,000 into an investment account. This investment pays 4.5% annual interest rate. How much would the firm have in this investment after 12 years?
- Note 1: deposits are made at the end of each month
- Note 2: no initial investment was made before monthly payments, i.e., the initial investment amount is $0
| Initial Investment | $0 |
| Annual Interest Rate | 4.50% |
| FUTURE VALUE | |
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
