11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment starts at end of the 4th year given annual interest rate of 10 percent. 12. How much should you pay for an investment that will pay you a dividend of RM1, 750 for every quarter indefinitely if money is worth 10 percent per annum compounded quarterly for the following scenarios: i. Just after the dividend has been paid. ii. Just before the dividend is due to be paid.
11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment starts at end of the 4th year given annual interest rate of 10 percent. 12. How much should you pay for an investment that will pay you a dividend of RM1, 750 for every quarter indefinitely if money is worth 10 percent per annum compounded quarterly for the following scenarios: i. Just after the dividend has been paid. ii. Just before the dividend is due to be paid.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 7PROB
Related questions
Question
11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment starts at end of the 4th year given annual interest rate of 10 percent. 12. How much should you pay for an investment that will pay you a dividend of RM1, 750 for every quarter indefinitely if money is worth 10 percent per annum compounded quarterly for the following scenarios: i. Just after the dividend has been paid. ii. Just before the dividend is due to be paid.
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