nt For the last 1 years Homer has made deposits of $225 at the end of every six months earning interest at 1.54% compounded semi-annually. If he leaves the accumulated amount in an account earning 2.16% compounded quarterly, what will the balance be in Homer's account at the end of another 6 years? Round your answer to the nearest dollar. Full solution to this problem required in the rough work. can IIIGE

nt For the last 1 years Homer has made deposits of $225 at the end of every six months earning interest at 1.54% compounded semi-annually. If he leaves the accumulated amount in an account earning 2.16% compounded quarterly, what will the balance be in Homer's account at the end of another 6 years? Round your answer to the nearest dollar. Full solution to this problem required in the rough work. can IIIGE

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Once per year Ritchie Rich deposits an amount of $800 in an account which pays 10% interest per year, compounded annually, with additional deposits of $800 continually made at the end of the year. If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit, then we can write B₁ = $800. (a) Complete the table to find the following. Report to the nearest $0.01. i) the balance, B, of the account on the day immediately after the second deposit. ii) the balance, B₁, of the account on the day immediately after the third deposit. iii) the balance, B₁, of the account on the day immediately after the fourth deposit 71 (Number of deposits) 1 2 OO B= $321158.22 (b) Suppose Ritchie makes 38 deposits. What is the balance of the account on the day immediately after the 38th deposit? 0 B$29923.47 B$29123.47 B= $264031.59 B, ($) $800 $ Number O B$291234.75 (It is more than $880.) $ Number S Number Q (c) Suppose Ritchie makes 438 deposits. Which is true about the…
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Anita opens a savings account. At the start of each month she deposits SX into the savings account. At the end of each month, after interest is added into the savings account, the bank withdraws $2500 from the savings account as a loan repayment. Let M be the amount in the savings account after the n" withdrawal. The savings account pays interest of 4.2% per annum compounded monthly. (i) Show that after the second withdrawal the amount in the savings account is given by M = X(1.0035 + 1.0035)- 2500(1.0035 + 1). %3D (ii) Find the value of X so that the amount in the savings account is $80 000 after the last withdrawal of the fourth year.

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