(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $15,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $30,000 in the last year (period 16)? Assume an interest rate of 9 percent.
(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $15,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $30,000 in the last year (period 16)? Assume an interest rate of 9 percent.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Part 1
(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw
$15,000
a year for the next
6
years (periods 11 through
16)
plus an additional amount of
$30,000
in the last year (period
16)?
Assume an interest rate of
9
percent.Question content area bottom
Part 1
The amount of money you have to deposit today is
$enter your response here.
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