What lump sum of money must be deposited into a bank account at present time so that $1,500 per semi-annual can be withdrawn for 10 years, with the first withdrawal scheduled for five years from today? The nominal interest rate is 12% per year compounded quarterly

What lump sum of money must be deposited into a bank account at present time so that $1,500 per semi-annual can be withdrawn for 10 years, with the first withdrawal scheduled for five years from today? The nominal interest rate is 12% per year compounded quarterly

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 5P

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4. Draw cashflow diagram and show all solution. not in excel please

What lump sum of money must be deposited into a bank account at present time so that $1,500 per semi-annual can be
withdrawn for 10 years, with the first withdrawal scheduled for five years from today? The nominal interest rate is 12% per
year compounded quarterly

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