A father wishes to bequeath to this daughter 20,000 ten years from now. If he invest an amount earning interest rate of 8% compounded annually during the first five years and 12% compounded semi annually during the next five years,determine: a. what amount should he invest now?
A father wishes to bequeath to this daughter 20,000 ten years from now. If he invest an amount earning interest rate of 8% compounded annually during the first five years and 12% compounded semi annually during the next five years,determine: a. what amount should he invest now?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 18PROB
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A father wishes to bequeath to this daughter 20,000 ten years from now. If he invest an amount earning interest rate of 8% compounded annually during the first five years and 12% compounded semi annually during the next five years,determine:
a. what amount should he invest now?
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