Question
The total interest paid on an investment is the difference between cash out, or A , and cash in, or P; that is I =
The total interest paid on an investment is the difference between cash out, orA, and cash in, orP;that isI = A - P. If HSBC's wealth management unit offers to invest profits of $750,000 made by an artist on a world tour at 7% compounded semi-annually, locking the money for three years, what is:
- The cash out?
- The total interest earned by the investment?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
