Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 5P
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Lewis has already saved $10,000. Suppose he continues to make contributions of $500 at the beginning of each month for the next 10 years. He has a goal of having $150,000.
1. What monthly nominal 2. If the best rate in the market he can find is a 9.9% monthly nominal rate, what would be the new amount for the contributions he will have to make to still achieve his goal of having $150,000 in 10 years? |
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