Question
You deposit $28,000 today in a bank that promises to pay an annual interest of 10%? What is future value of this sum at the
You deposit $28,000 today in a bank that promises to pay an annual interest of 10%? What is future value of this sum at the end of 8 years? What is the FV of the sum if the interest rate is 5% for the first three years, 7% for the next three years and 9% thereafter? Explain the relationship between Interest rates and the future value of a sum.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
