A pension provider makes an investment of £68567 into a fund. It is expected that the fund will return a net dividend payable continuously in exactly 3 half-years from the time of investment. After this initial delay, the dividends will amount to £16218 per year for the first 8 years and of £1 3724 per half-year for the remaining 6 years until the holdings will be sold for £5680. Assuming a force of interest of 2.7% per half-year is applicable for the entire period.

Calculate the net present value of this investment in £5 to 2 decimal places?

Answer rating: 100% (QA)

To calculate the net present value of the investment we need to calculate the present value of all t... View the full answer