You will invest in something that will give you a payment of $211 two times each year. You plan to hold on to the investment and hope to sell it for $37436 in 14 years. Investments of this risk should earn 9.92%. How much is it worth today? (hint: There is both an annuity (the semi-annual payments) and a lump sum (the selling price). Find the present value of each and add them together.) (Remember that you need a semi-annual "r" and a semi-annual "t".) Answer:
You will invest in something that will give you a payment of $211 two times each year. You plan to hold on to the investment and hope to sell it for $37436 in 14 years. Investments of this risk should earn 9.92%. How much is it worth today? (hint: There is both an annuity (the semi-annual payments) and a lump sum (the selling price). Find the present value of each and add them together.) (Remember that you need a semi-annual "r" and a semi-annual "t".) Answer:
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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You will invest in something that will give you a payment of $211 two times each year. You plan to hold on to the investment and hope to sell it for $37436 in 14 years. Investments of this risk should earn 9.92%. How much is it worth today? (hint: There is both an
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An annuity is a contract that you have with an insurance provider that calls for periodic payments to be made to you, either now or in the future.
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