Question
Suppose you want to have $50,000 in ten years. (a) How much would you have to deposit today in an account that pays 10% interest
Suppose you want to have $50,000 in ten years. (a) How much would you have to deposit today in an account that pays 10% interest compounded annually? (b) How much would you have to deposit if the interest is compounded quarterly? (c) As an investor would you prefer the annual or quarterly compounding? Explain why.
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Valuation, Measuring And Managing The Value Of Companies
Authors: Tim Koller, Marc Goedhart, David Wessels
7th Edition
1119611865, 9781119611868
