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gewusel gewusel
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6 years ago
Calculate the amount of money that needs to be invested today at 7% compounded semi-annually to provide monthly payments of $2000.00 in perpetuity starting:
a) one month from today
b) one year from today
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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wrote...
6 years ago
a)    PMT = 2000; i =   = 0.035; c =   = 
   p =   - 1 = 0.005750039
   PV =   = $347823.70
b)   PV = 2000 +   = 2000 + 347823.70 = 349823.70
   FV = 349823.70; i = 0.035; n = 1(12) = 12
   PV = 349823.70 = $326 564.17
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