R2600 is invensted into an account paying 16% per annum compounded monthly, The first payment is made 9 months from now and continued up to the end of the nineth year, The investor requires a lump sum in 10 years from now. What is the value of the lump sum at the end of the 10th year?
If you could show working out it would be awesome :)
Mar 19th 2010, 05:23 PM
0.16 / 12
Really, that's about all you need.
I reconsidered. You also need some sort of description of the cash flows. It the 2600 the only deposit? What starts in nine months? More deposits? Will payments to the owner commence?