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An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return of 18 percent per year. if the investor decides to withdraw the accumulated interest at the end of each year, what would be his yearly earnings from the investment if added (i) yearly, (ii) six-monthly, (iii) quarterly, (iv) monthly, and (v) continuously?

An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return of 18 percent per year. if the investor decides to withdraw the accumulated interest at the end of each year, what would be his yearly earnings from the investment if added (i) yearly, (ii) six-monthly, (iii) quarterly, (iv) monthly, and (v) continuously?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return of 18 percent per year. if the investor decides to withdraw the accumulated interest at the end of each year, what would be his yearly earnings from the investment if added (i) yearly, (ii) six-monthly, (iii) quarterly, (iv) monthly, and (v) continuously?

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