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    Quarterly Compounding, Security vs. Invested

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    Securities requiring 4 payments of $50 at end of next 3 years plus payment of $1050 at end of yr 4. Each security costs $900 each. Your money is invested in bank at 8% (nominal) with quarterly compounding. Calculate value of securities to decide if they are a good investment. What is their present value?

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    quarterly compounding, security vs. invested
    Securities requiring 4 payments of $50 at end of next 3 years plus payment of $1050 at end of yr 4. Each security costs $900 each. Your money is invested in bank at 8% (nominal) with quarterly compounding. Calculate ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate value of securities to decide if they are a good investment. and what is their present value.

    $2.19

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