A bank account pays 5.2 % annual interest compounded semiannually. How much money should be deposited in it now so that the account contains 20500 Rials at the end of 3 years? (Give your answer to the nearest Rial). Select one: O 3704 (Rials) O 17116 (Rials) O 24563 (Rials) O 17129 (Rials)

A bank account pays 5.2 % annual interest compounded semiannually. How much money should be deposited in it now so that the account contains 20500 Rials at the end of 3 years? (Give your answer to the nearest Rial). Select one: O 3704 (Rials) O 17116 (Rials) O 24563 (Rials) O 17129 (Rials)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

A bank account pays 5.2 % annual interest compounded semiannually. How much money should be deposited in it now so that the
account contains 20500 Rials at the end of 3
years? (Give your answer to the nearest Rial).
2
Select one:
O 3704 (Rials)
O 17116 (Rials)
O 24563 (Rials)
O 17129 (Rials)

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