An investment required an initial payment of $10,000 and annual payments of $1,500 at the end of each year for 10 years. Starting at the end of the 11th year, the investment returns 5 equal annual

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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An investment required an initial payment
of $10,000 and annual payments of $1,500
at the end of each year for 10 years.
Starting at the end of the 11th year, the
investment returns 5 equal annual
payments of $X. Determine X to yield an
annual effective interest rate of i= 8%
Transcribed Image Text:An investment required an initial payment of $10,000 and annual payments of $1,500 at the end of each year for 10 years. Starting at the end of the 11th year, the investment returns 5 equal annual payments of $X. Determine X to yield an annual effective interest rate of i= 8%
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