Processing math: 100%
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. math exams: Question FM 11/17/2011 10:40

Thursday, November 17, 2011

Question FM 11/17/2011 10:40

Payments of \$10 are received at the end of each year for 5 years, after which payments of \$100
are received at the end of each year forever. The annual effective interest rate is \%10.
Determine the present value of these payments.

Ans: 10\frac{1-(1.1)^{-5}}{0.1}+\frac{100}{0.1}.(1.1)^{-5}

No comments:

Post a Comment