The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal) Round your new table factor to five decimal places and your present value to the nearest cent. Compound Term of Nominal Interest New Table Present Amount Investment (years) Rate (%) Compounded Factor Value $34,000 38 7 annually 2$
The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal) Round your new table factor to five decimal places and your present value to the nearest cent. Compound Term of Nominal Interest New Table Present Amount Investment (years) Rate (%) Compounded Factor Value $34,000 38 7 annually 2$
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The following investment requires a table factor for a period beyond the
table. Calculate the new table factor and the present value (principal)
Round your new table factor to five decimal places and your
present value to the nearest cent.
Compound
Term of
Nominal
Interest
New Table
Present
Amount
Investment (years)
Rate (%) Compounded
Factor
Value
$34,000
38
7
annually
$
Expert Solution
Step 1
We need to find the present value of the given amount.
Given;
P = 34000
N = 28
r = 7% annual compounding
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