Markets: A Rigorous Course
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M00 · Problem 1 ★ Check

SIP future value

You invest ₹15,000 at the start of every month for 15 years in a fund that earns a constant 11% a year. (a) Find the monthly rate and the value after 15 years. (b) How much of the value is gain? (c) Recompute (a) using the nominal convention i=0.11/12i = 0.11/12. By how much does the convention change the answer?

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Commas, ₹, % and 1e-3 notation are accepted.

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