Sam has an opportunity to invest in an income account at 12 percent compounded continuously. The amounts invested plus interest come back to Sam in the form of a check at the end of each month for 8 years. How much should Sam invest if he wants the monthly income check to be $1000?
Sam has an opportunity to invest in an income account at 12 percent compounded continuously. The amounts invested plus interest come back to Sam in the form of a check at the end of each month for 8 years. How much should Sam invest if he wants the monthly income check to be $1000?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 14PROB
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Sam has an opportunity to invest in an income account at 12 percent compounded continuously. The amounts invested plus interest come back to Sam in the form of a check at the end of each month for 8 years. How much should Sam invest if he wants the monthly income check to be $1000?
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