Francis deposits P 100,000 into a fund today and P 200,000 fifteen years later. Interest is credited at a nominal discount rate of d compounded quarterly for the first 10 years, and at a nominal interest rate of 6% compounded semiannually thereafter. The accumulated balance in the fund at the end of 30 years is 1,000,000.
Francis deposits P 100,000 into a fund today and P 200,000 fifteen years later. Interest is credited at a nominal discount rate of d compounded quarterly for the first 10 years, and at a nominal interest rate of 6% compounded semiannually thereafter. The accumulated balance in the fund at the end of 30 years is 1,000,000.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 26P
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Note: d is a nominal rate so to avoid confusion you may want to write this as d^(4) first.
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