The company invest $600K per month with return of 12%, compounded semiannually. a) How much will...

The company invest $600K per month with return of 12%, compounded semiannually.

a) How much will the company have in the investment account at the end of year 10. (Assume that interperiod cash flows earn prorated compound interest.)

b) With this investment, the company plans to build the road which requires $100 million. Is the company going to have enough to build it?

Expert Solution

a)

b) With this investment, the company can easily build a road of $100 million with the balance amount of approx $38949885.

jeff jeffy answered 1 year ago

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