Explore BrainMass

Explore BrainMass

    TVM (Time Value of Money) Questions

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    You need $28,974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year.

    1. What single payment could be made at the beginning of the first year to achieve this objective?
    2. What amount could you pay at the end of each year annually for 10 years to achieve this same objective?

    © BrainMass Inc. brainmass.com March 4, 2021, 7:47 pm ad1c9bdddf
    https://brainmass.com/business/the-time-value-of-money/tvm-time-value-of-money-questions-122656

    Solution Preview

    You need $28,974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning ...

    Solution Summary

    The solution provides answers to questions on Time Value of Money

    $2.49

    ADVERTISEMENT