A intends to invest a level amount of money equal to
$1,000 into a fund at the end of every year for 20 years. This fund
is projected to earn an annual effective interest rate of 10%. At
the end every year, A will have to withdraw the interest accrued
during that year and reinvest it at an annual effective rate of
Assume that A wants the annual yield rate of the above investment
scheme to be 8% over the 20_year life of the investment.
How much should A charge B today for the right to the above
investment in order to get the yield A wants?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more