You need $23,956 at the end of nine years, and your only investment outlet is a 7

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You need $23,956 at the end of nine years, and your only investment outlet is a 7 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year.

a. What single payment could be made at the beginning of the first year to achieve this objective?

b. What amount could you pay at the end of each year annually for nine years to achieve this same objective?

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Foundations of Financial Management

ISBN: 978-0077454432

14th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Jul 13, 2016 03:38 AM

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You need $23,956 at the end of nine years, and your only investment outlet is a 7

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Foundations of Financial Management

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