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
Related questions
Question
- What lump sum of money – deposited today – will accrue (grow) to a
future value of $15,000 at 3 1/2% compounded semi-annually for 5 1/2 years.
Expert Solution
Step 1
Given data;
Future value = $15,000
interest rate = 3 1/2% = 3.5%
number of years = 5 1/2 = 5.5 years
compounding frequency = semiannually = 2
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