HW2

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Unformatted text preview: year 18 and through the end of year 21 (4 years). Assume a nominal investment interest rate of 9% compounded annually. What is the value of the payments at the beginning of year 18 (end of year 17)? 2)How much would you have to invest today (time zero) to cover the estimated cost of four years of college? 3) What uniform series of deposits at the end of each of years 1 through 17 would be required to cover the tuition costs in years 18 through 21? 6. What equivalent annual end- of year payments for the next 6 years are equivalent to paying $5,000 now and $10,000 6 years from now if interest is 9% compounded annually? 7. A petroleum investor plans to invest $1,000 at the end of every year for 20 years at 9% interest compounded annually. What is the expected value of...
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This document was uploaded on 03/27/2014.

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