Question
Suppose that an investor needs 15,000 at the end of seven years from today. However, he can only invest $1000 per year from year 1
Suppose that an investor needs 15,000 at the end of seven years from today. However, he can only invest $1000 per year from year 1 to year 4 (investments take place at the end of each year). How much does the investor need to invest each year from year 5 to year 7 to achieve his objective? Assume that the interest rate is 10%, compounded annually.
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
