d) You expect to make 12 semi-annual payments of $ 5,000 each at the rate of return of 5% capitalized monthly for the first 2 years and at the effective rate of return of 6% thereafter. The first payment is expected in 6 months. Calculate the accumulated value of your payments after 6 years.
d) You expect to make 12 semi-annual payments of $ 5,000 each at the rate of return of 5% capitalized monthly for the first 2 years and at the effective rate of return of 6% thereafter. The first payment is expected in 6 months. Calculate the accumulated value of your payments after 6 years.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 5P
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